Geopolitics is already shaping-up as the major driver of financial markets this week. Data is rather light, with the US Federal Reserve’s meeting on Thursday morning (AEST) the centrepiece of an economic calendar otherwise filled with a handful of central-bank-head speeches and a meeting of the RBNZ. Hence, traders will find themselves sucked into a vacuum that can only be filled by noise surround the global economy’s biggest contemporary international-political hot-points. The break-down in tal
Stocks pull back in the Asian overnight market after a tepid close of Wall Street last night.
Bellwether metals copper and zinc, along with other industrial metals, continue their rally as investors and traders focus on increasing demand rather than US-Sino relations.
Rio Tinto announced a $3.2bn share buyback scheme, and whilst the Anglo-Australian miner saw 3.2% gain the ASX didn’t follow suit and ended down slightly. Potential swings on the UK Rio listing on the open.
Theresa May will begin the five days of her House of Commons debate today, culminating in a historic vote on her Brexit compromise deal on December 11.
The Dow Jones closed 1.13% higher at 25,826.43 yesterday, whilst both the S&P and Nasdaq posted gains of 1.09% and 1.51 percent, respectively.
Asian shares fell on Tuesday as the optimism gathered from the US-China trade truce ends over doubts of a final resolution: the Hang Seng lost 0.3% as the ASX gave up 0.8% and Japan's Nik
Nissan shares fell more than 5% following Chairman Carlos Ghosn being placed under arrest for allegedly violating Japanese financial law
Societe Generale SA settles sanctions violation case with US authorities agreeing to pay $1.34 billion
Talk talk hackers who caused massive data breach affecting 1.6 million customer accounts in 2015 have been jailed for cyber crimes
Oil prices ended on a high yesterday, as EU reported to back French sanctions on Iran
Dow Jones tu
USDJPY falls on the back of an intensifying trade war dispute.
‘Fang’ stocks and the heavily tech centric Nasdaq slump on the same trade war fears.
Turkish lira gains from yesterday gives further reason for overseas investment in Turkey to remain wary. USDTRY looking like it could have entered a period of consolidation after rising nearly 25% from the beginning of the year.
Oil prices rise on the Libyan oil export uncertainty, however OPEC still the overarching dampener with
The Asian market index futures boards are seeing a sea of red on the back of continued EM anxieties.
Dollar seeing pressure as European peers are bid up.
Tesla stock slips as investor worries deepen, whilst the Tesla bond hits a record low.
Uber on track for an IPO in 2019, however there are no plans to sell it's tech unit according to CEO.
Goldman have dropped bitcoin trading plans for now according to reports. Crypto space crashes.
Gold seeing an increase in
Written by Kyle Rodda - IG Australia
Week starts soft: Global equities are down to start the new week. The stories driving the overnight moves are slightly different, but the themes remain the same: the dual risks of higher global interest rates and the prospect of slower global growth has put the bears (at least momentarily) back in control. It can feel repetitive to keep having to reel-off this story. Slower growth, higher rates, slower growth, higher rates – the message keeps echoing thr
Bitcoin hit year low falling below $3,500 after a 11% dive.
Chip stocks in Europe and Asia tumbled after the arrest of Huawei CFO . AMS dived 7%, STMicroelectronics fell 4% and Dialog Semiconductor slid 3%.
Dow rebounds after falling 780 points ending the day only slightly lower yesterday.
10-year Treasury yield fell to 2.83% amid stock sell-off compared to the beginning of the week where it was above 3%.
Non-Farm payrolls today expected to have expanded by 198,00 i
Asian equities gained as investors weighed in comments from Federal Reserve officials and a possible breakthrough in US-China trade war. Shares in Hong Kong and China led the gains with the Hang Seng Index climbing 0.5% and the Shanghai Composite gaining 0.7%.
Oil crude was up with WTI gaining 0.9% to $52.02 a barrel after a US industry report signaled shrinking gasoline surplus. Concerns of sanctions to Russia following its sea clash with Ukraine and Saudi’s vow to cut production in Dec
The Turkish lira crashes yesterday as the central bank decided to keep rates unchanged despite soaring inflation.
The UK housing market looks to remain stagnant as figures released by HMRC showed housing transactions slipped last month by as much as 3%. House sales were down nearly 6% YoY. Housing market data in the US set to release today, so keep an eye out at 12 midday and 3pm for mortgage apps and new home sales figures.
Banking shares continue to gain globally. Metro bank has
China trade war escalates as new tariffs kick in: U.S. economy set to slow from here on, damaged by trade war
EM ASIA FX soften as dollar recovers after falling for six straight sessions
Wall Street sets record for longest bull run in history; Key S&P 500 index passes landmark as it goes 3,453 days without major correction
Brexit contingency plan papers released; Brexit could be good news for Britain's farmers
Australian dollar drops as three government ministers
Written by Kyle Rodda - IG Australia
I'm mad as hell and I am not going to take this anymore! It was this sentiment in November 2016 that raised political-renegade and anti-establishment Republican Presidential candidate Donald Trump from rank-outsider and laughing-stock to President of the most of powerful country in the world. No one seemed to see it coming, and as electoral college votes were slowly counted on Election Day almost exactly 2 year ago, the world sat in awe as what was consi
Make or Break for Brexit?
There have already been so many twists and turns in the UK’s efforts to negotiate its separation from the European Union that that investors are getting dizzy. It is troublingly difficult to gain a reliable bead on a probable outcome for this stalemate, but the lack of time and dwindling hope of an outcome that will satisfy the majority of those involved raises the threat of a ‘bad’ outcome and even worse market response. This is not one of those events where igno
Written by Kyle Rodda - IG Australia
The fallout: The US mid-terms have passed, and while there were signs throughout yesterday's trade that the vote would throw up a few curly situations, the outcome fell broadly in line with market expectations. The VIX has dropped and US equities, paced by the NASDAQ, have subsequently rallied, primarily on the knowledge that everything went according to plan -- proving the notion that the biggest drag in markets all-in-all is uncertainty. There are enum
Ending a Trade War is a Windfall for Growth?
US and Chinese trade officials met this past week to lay the groundwork for another attempt to push for a breakthrough in the superpowers’ ongoing trade war. These are lower level meetings aimed at finding concessions and terms for which Trump and Xi would eventually sign off on. With over $350 billion in goods from both countries saddled with import taxes, the economic toll the engagement is exacting is starting to show through in data. In the
The S&P 500 and Nasdaq both set new records, passing the 2900 and 8000 mark respectively for the first time in their history.
Focus shifts on talks between the US and Canada on an updated NAFTA, which could be signed in the coming days.
Canada’s Foreign Minister Chrystia Freeland is now in Washington to carry out negotiations.
The previously announced deadline for Brexit talks set for the 18th of October may not be feasible, as rumors spread that it may now be postpone
The U.S. Government has seen turmoil over the weekend after "Trump's Wall" disagreement on Friday resulted in a government shutdown.
Trump will be bringing in the new year with new Defence Secretary. Patrick Shanahan will replace James Mattis on 1st January, earlier than expected.
The end of the year sees further stock slumps, particularly for 2018 tech IPOs. Domo plummeting 25%, Zscaler tumbling 18% and Zurora and SurveyMonkey falling over 10%
Asian Stocks saw a mixed Mond
Australian equity markets gain after leadership vote ends political uncertainty with the Australian leader Malcolm Turnbull ousted by Scott Morrison.
Hang Seng equity market slips after US-China trade talks end without progress.
Saudi Arabia has denied that its $2 trillion Aramco IPO has been cancelled, and that they’re instead waiting for “appropriate circumstances and appropriate time” for the listing.
Trade concerns continue to hit gold prices however they do make gains,
The African swine fever disease has reached Southeast Asia and parts of Europe, including the world’s biggest producer of Pork, China. A prediction from the Japanese bank Nomura, is that this could cause prices to rise by 78% in China by 2020, to 33 yuan per kilogram from 18.5 yuan
Senior US and China officials to organise more face-to-face trade talks, aiming to reach a deal by early May and to sign at the end of that month
North Korea claims it has test-fired a new weapon with a
Asian equity markets mixed overnight on better than expected Trump trade talks, but poor US futures - notably Facebook results.
Saudi Arabia is suspending the shipment of oil via the Red Sea following an attack from Yemeni Houthi.
Gold steady as dollar eases after US and EU trade talks.
Big results day for the European market with Shell, Diageo, Nestle, Daimler, and AB InBev set to give trading updates.
The corporate focus remains crucial for US markets of late, with
Yesterday saw further pessimism from corporate giants as the likes of Jaguar Land Rover, Macy's Inc and BlackRock Inc cut profit forecasts.
Geely Group halves 9.7% stake in Daimler AG.
Virgin Atlantic and Stobart Group to buy Flybe for £2.2million after Flybe profit warning saw shares prices tumble in October 2018. A fall from which it hasn't recovered.
Trump announced intention to bypass Congress by declaring a national emergency in order to fund wall. This comes as gover
The Asia-Pacific Economic Cooperation (APEC) summit ended on Sunday with leaders failing to agree on a formal joint statement for the first time in its 25-year history, due to disagreements on trade. Chinese President Xi Jinping expected to gain influence in the Pacific as Trump and Putin decided not to attend the summit, however Xi left disappointed as the US and allies made it clear that they are prepared to use economic and military means to counter China's influence.
Asian equities we
Oil seeing volatility ahead of a crucial meeting for OPEC on production. 'History of Crude Oil' video below.
Emerging markets aren't helped by trade war talks and slip to a 9 month low.
Trade war fallout starting to be seen with Daimler's profit warning likely to be linked to the imposed tariffs.
Relatively large macro economic day today. Give a once over to the calendar below and plan your day.
Asian Overnight: Asian markets were largely back in the red overnight, as
Please see the following analysis from Chris Beauchamp, Chief Market Analyst at IG, a global leader in online trading.
OPEC faces a difficult task this week, as it aims to prop up the oil price without antagonising the US or putting too much strain on state finances by cutting production too much.
The current state of demand and supply
After being in deficit for 2018 and 2019, the oil market is expected to shift back to surplus next year:
Crude output c
Trading in Asia was mixed as US shares stabilized overnight. In the meanwhile, the ongoing discussions between China and the US adds uncertainty. The bottom performer among major Asian indices was the Nikkei, which fell 0.45%.
Oil climbed higher amidst resuming hopes following the 1.2 million barrels per day production cut agreed by OPEC+. However, concerns that the US could much further increase its shale production and the slowing global economy could make the output cut less effective.
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