With the Fed’s Language, Global Central Banks Signal Softening Policy
Global monetary policy has shifted more noticeably to the dovish extreme of the scale over the past months, but investors were overlooking this questionable support because the markets were under serious duress. Yet, after the three-month tumble leveled out into a meaningful recovery into January, market participants began to look for fundamental reasoning to justify their growing confidence for their exposure. With the F
Global markets relatively still: Wedged between the beginning of Chinese New Year and Superbowl Sunday in the US, financial markets, on a global scale, have been a relatively quiet place in the past 24-hours. The excitement, anxiety and anticipation that has catalysed movement and activity in global markets lately was noticeably absent. Last week was a hard act to follow, what with the Fed, US corporate earnings, trade-war negotiations, Brexit, and a litany of fundamental data to keep traders oc
Asian equities are modestly up as investors price in strong US job report and president Trump’s optimism on trade talks. The top performer was Japan’s Topix index which was up 1% at 3:32 GMT, following a weaker Yen. Major markets across Asia will close for part or all of the week as the region heads into Lunar New Year holidays.
India NSE Nifty 50 is down 0.5% as of 5:15 GMT as investors evaluate the populist push in the government’s last federal budget. India is set to cut taxes to middl
Expected index adjustments
Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 4 Feb 2019. If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect your positions, please take a look at the video.
NB: All dividend adjustments are forecasts and therefore speculative. A dividend adjustment is a cash neutral adj
US economy still leads the pack: The bounce in global equity markets has been uniform, but the economic data is pointing to a return of the “diverging global growth” narrative. It was what dominated the latter half of 2018: the US is humming, while the rest of the world economy languishes. The difference in economic fortunes isn’t quite so stark now, however it remains conspicuously extant. It becomes a matter of how long such a dynamic can last. Frankly, market participants had resigned themsel
Amazon announced a rise in investments, causing shares to fall over 5 percent , however beats earnings per share expectations and revenue, reporting $6.04 per share in comparison to an estimate of $5.68 per share and a revenue of $72.4billion versus %71.9billion.
Caxin Manufacturing PMI falls below expectations to 48.3 in January in comparison to 49.7 in December, its lowest reading since 2016
Stocks in Asia mostly traded higher, with the Shanghai Composite increasing around 1.3 pe
Dear IG community,
There will be some changes to some of our Asian markets over the upcoming Lunar New Year, starting Monday 4 Feb. We will continue to make out of hours index prices throughout any breaks (excluding Taiwan and Malaysia).
See the table below for the relevant information.
Fed sparks bullish sentiment: Traders were bullish overnight, but as far global equities go, the ultimate results were mixed. Activity has been very high, that’s irrefutable. Volumes flowing into stocks have been much higher than average, no matter where you look. Fundamentally, the Fed has lit a fire under markets, and traders are repositioning to adjust to a new set of circumstances. The fundamentals have shifted in quite a meaningful way. It’s the notion that the Fed will maintain monetary po
Facebook shares soared 12% after Earnings report of $2.38 per share crushed $2.19 expectation. Facebook's revenue forecast of $16.39 billion was also outdone coming it at a reported $16.91 billion
Tesla shares fell 5% in after hours trading after disappointing earnings report of $1.93 per share. This came after a 3.8% share rise in the regular session pre-results.
Microsoft also saw underwhelming results report. Despite beating earnings expectation of $1.09 by 1 cent per share, Mi
Who has an interest in Emerging Markets? How would you like the opportunity to have direct access to a panel who will be able to answer your questions directly? You can be part of the latest IG chat by leaving your EM question on social media using the #IGEMchat hashtag, or by simply leaving a comment on this blog post. Even if you don't have an account with IG you can leave your comments below! The live broadcast will be available within the dealing platform, or on this page, on Wednesday the 6
MP’s have voted to remove the Irish backstop and remove the possibility of a No-Deal Brexit in the latest round of Commons voting.
Venezuela’s Maduro is reported to have said he is ready to talk to the opposition. This could hopefully stop the escalation of unrest in Venezuela which yesterday saw defectors calling on the Trump administration to arm them against Maduro, labelling him a dictator.
The FTSE gained 1.75% yesterday whilst the Dow gained 0.8%
Meanwhile the Hang Se
As MPs prepare to vote on amendments to the Brexit Plan, Theresa May has set the 13th of Feb as the date to hold a second round of voting on her Brexit deal.
Apple is set to release its Q4 earnings after market close today. According to Zacks Investment Research, the EPS is expected to be $4.17, an increase of 7% YoY. This will be a crucial earnings report for Apple, as it pre-announced its December results on January 2nd, lowering revenue expectations by 8%, and blaming the slowdown on w
Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 28 Jan 2019. If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect your positions, please take a look at the video.
NB: All dividend adjustments are forecasts and therefore speculative. A dividend adjustment is a cash neutral adjustment on your account. Specia
The US Government Shutdown is Over, Now What?
Late last week, US President Donald Trump announced from the White House that he would back a stopgap funding bill that would reopen the federal government in full. This would mark the end of a record-breaking (35-day) partial shutdown of the US government. Normally, that would be reason for a swell in market enthusiasm. An onerous pressure on the US economy – a 0.13 percentage point reduction in GDP – suddenly lifted would typically manifest in
The 35 day partial US government shutdown has ended after Trump conceded his demand for $5.7 billion to build his border wall as a condition for reopening the government. The temporary measure will fund the government for three weeks while Congress try to craft an immigration deal that pleases the president.
US equities closed at a high on Friday as a solution for the partial government shutdown is reached. The Dow closed 0.8% higher at 24,737.20, whilst the S&P 500 also gained 1% an
Coffee giant Starbucks announced that same-stores sales grew by 4% in its home US market, with overall revenue also beating expectations. Speaking about the results, CEO Kevin Johnson said that "Our streamline efforts over the past six quarters are paying off by allowing us to bring more focus and discipline to our three strategic priorities".
Talks are continuing in the US as the Senate tries to reach an agreement to end the government shutdown, which is now in its 34th day. The White ho
Sentiment weaker; but ASX to rise: SPI Futures are indicating an 11-point gain at the outset for the ASX200 this morning. It's perhaps a surprising result, given overnight activity. The chorus of pundits calling an economic slowdown grew louder, backed up by weak data and some unfavourable headlines. The Australian Dollar is better reflecting the dynamic: it's fallen through the 0.7100 level to eye support at 0.7040. Perhaps the weaker A-Dollar is behind some of the expected lift in Aussie stock
After twenty years as a prominent business leader in the global auto industry, Carlos Ghosn resigned the top job at Renault late on Wednesday. He will be replaced as Chairmen by Michelin chief Jean-Dominique Senard and as CEO by Thierry Bollore. The news could shake the unstable Renault stock, as markets would balance their trust on the restored leadership with the implied uncertainty.
It was an exciting trading session in Singapore as Jardine Matheson Holdings Ltd plunged about 83% in pr
The control of the market: The bulls and bears are circling one another, with neither to take control in a meaningful way this week. There is a vacillating in sentiment, maybe as each side recognizes that not enough information has emerged this week to tip favour towards one camp or another. Moments like these can be opportunities whereby markets build to a breaking point. It becomes a matter now of waiting for the necessary evidence to buy-in or sell-out. Headlines are determining intra-day mov
A mixed session for the Asian markets this morning, following the report of the US cancelling the trade meet with Chinese officials due to outstanding disagreements over intellectual property rules. Shanghai composite, Hang Seng Index and Nikkei 225 rose slightly in comparison to ASX 200, Shenzhen component and Shenzhen composite which saw a slight decline
US stocks fall overnight as the Dow Jones Industrial Average declined by over 300 points, the S&P 500 by 1.4% and Nasdaq Composite
The pull-back is here: The pull-back markets were waiting for – the one we inevitably had to have – has arrived. It’s risk-off across financial markets and the optimism that drove global stocks off their December lows has subsided. Relatively speaking, it’s been a day of significant downside, but nothing yet to warrant tremendous fear. It should be common knowledge, but it bears repeating: proper validation that global equities have truly established a recovery ought to be judged not by the late
The IMF has cut its forecasts for growth as it says the global economic expansion is losing its momentum, projecting a 3.5% growth rate worldwide for 2019, 0.2 percentage points less than its forecasts in October. This comes just hours after China announced its slowest economic growth in almost three decades.
Meanwhile, over at the World Economic Forum in Davos, there are ongoing talks over an array of current or potential crises, from the US-China trade war to the uncertainty surrounding
Bullishness settles: The ASX200 was sold into the close on a day where the market's bullishness stalled. Nevertheless, the index ended the day in the green, adding 10 points. It's a very headline driven market currently, and the finger is being pointed to news that the US and China are squabbling over intellectual property protections as the cause for the cooler sentiment. US markets were closed for the Martin Luther King Day public holiday, so the lack of tradeable information probably hindered
