Global iron ore producers BHP and Rio Tinto have been beset by challenges in China, including a recent power shortage.
Source: Bloomberg
Shares BHP Dividend Iron ore Ore China
BHP (ASX: BHP) share price sheds 2.8% day-o
Gold looks at risk of a protracted period of decline, as rising yields highlight the potential for long-term weakness for the precious metal.
Source: Bloomberg
Joshua Mahony | Senior Market Analyst, London | Publication date: Wednesday 29 September 2021. IG
THE EURO, US DOLLAR, EUR/USD, NIKKEI 225, STAGFLATION - TALKING POINTS:
The Euro languishes as energy prices raise concerns.
APAC equities went lower as yields continue to rise.
Stagflation threatens global recovery. Where will EUR/USD go?
The Euro continued to threaten lower levels today as equity market routs continued on from the US lead. APAC shares went lower, except for a couple of Chinese indices buoyed as the PBOC added liquidity for the ninth day in a row.
KEY TALKING POINTS:
Oil demand picks up as economies recover from the pandemic shutdowns.
Power crunch in China unsettling oil traders.
Brent crude has dipped this morning after a 5-day rally ran out of steam after hitting a 3-year high just shy of $80 a barrel. It’s likely that profit-taking is behind yesterday’s rejection after a good rally but we may have some stagnation around this level as investors weigh up where to go next. The run-up in prices is leading on
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National Australia Bank shares deserve a rosy outlook, but its peer, top lender Commonwealth Bank, may underperform, analysts believe.
Source: Bloomberg
Shares National Australia Bank Commonwealth Bank Australia Bank Apple Inc.
The dollar has been on the rise as the Fed plots an increasingly hawkish path. With Powell stepping up once again, there is a good chance we could see months of dollar outperformance
Source: Bloomberg
Joshua Mahony | Senior Market Analyst, London | Publication date: Tuesday 28 September 2021. IG
Continued pressure on Boohoo shares comes even as the outlook for revenue and earnings is beginning to improve.
Source: Bloomberg
Chris Beauchamp | Chief Market Analyst, London | Publication date: Tuesday 28 September 2021. IG
Brent Crude Oil Price, Chart, and Analysis
Brent crude rallies on increased global demand.
Natural gas prices hits a multi-year record high.
Keep up to date with all market-moving data releases and events by using the DailyFX Calendar
The price of Brent crude oil continues to soar, touching highs last seen three years ago as demand outstrips supply. The continued rollback of covid-19 restrictions in economies around the globe is driving demand ever higher with supply
GBP/USD Analysis and News
GBP/USD on the Backfoot.
UK OIS Markets Price In Aggressive BoE Tightening. Room for Disappointment.
UK Data to Slow Down.
GBP/USD on the Backfoot
A modest pullback in the Pound this morning, breaking back below the 1.3700 handle. Reminder that today is corporate month end (two days before actual month end), which typically coincides with USD stength throughout the session. Addtionally, the sizeable pick up in US yields with the 10Y on
US 10-year treasury yields break higher, with USD/JPY and value stocks expected to gain in prominence as a result.
Joshua Mahony | Senior Market Analyst, London | Publication date: Monday 27 September 2021. IG
Fed tightening expec
Shares of Australia’s national carrier Qantas and travel agencies Flight Centre Travel Group and Webjet rallied strongly to start the week.
Source: Bloomberg
Shares Qantas Webjet Flight Centre Australia New South Wales
USD TECHNICAL OUTLOOK:
DXY trading towards important resistance test.
A sustained breakout is possible, but conviction lacks.
Price action may continue to contract through the rest of the year.
US DOLLAR TECHNICAL OUTLOOK: NEARING AN IMPORTANT TEST
The US Dollar Index (DXY) is trending higher and on the verge of testing an important set of resistance levels as we head towards the final frame of the year. The August high at 93.72 and top-side trend-line r
EUR/USD Analysis & News
SPD Wins Majority of Votes
The Greens & FDP to Decide Between Traffic Light or Jamaica Coalition
Euro Sees Muted Impact After Election Sees Status Quo Maintained
German Election Shows Victory for Centre-Left
The results: According to preliminary results, the SPD led by Olaf Scholz won the largest share of votes with 25.7% (+5.2ppts). The main opposition, the CDU/CSU were runners up with 24.1% (-8.9ppts), marking a poor night for
GBP/USD Price, Chart, and Analysis
Fuel shortages across the country need to be rectified immediately.
BoE and Fed speakers will help steer GBP/USD this week.
The UK government is to suspend competition laws between oil firms to help get fuel to the parts of the country suffering most from the petrol shortage. Over the weekend long lines of traffic blocked UK roads as drivers queued to buy petrol before forecourts ran out of fuel, sparking fears that the supply chai
With Alibaba’s share price falling close to 35% year-to-date, will it stage a recovery in the coming months?
Source: Bloomberg
Shares Alibaba Group China Price E-commerce Risk
Yeap Jun Rong | Market Strate
Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 27th September 2021. These are projected dividends and likely to change. IG cannot be held responsible for any changes made.
Dividends highlighted in red include a special dividend, therefore some or all of the amount will not be adjusted. Amount in brackets is the expected adjustment after special dividends excluded (where shown on major indices). Dividend adjustments due to be posted
The US Dollar may catch a haven bid as US-China tensions gradually escalate amid widening disagreements on foreign policy. Political volatility may dampen risk appetite and put a premium on liquidity. Issues over trade, the South China Sea and Taiwan remain the biggest sticking points, with the latter drawing more attention following America’s pullout of Afghanistan.
Sino-US tensions were expected to remain high even after former President Donald Trump left office. This is in part due to th
GBP/USD has flattened overnight after its strongest rally in a month on Thursday. The British currency has been under pressure recently as an energy crisis has caused a number of gas providers to go bankrupt, but the hawkish tone from the Bank of England sparked some optimism into the Pound pushing GBP/USD above recent resistance at 1.3720, with Dave Ramsden and Michael Saunders, two of the Monetary Policy Committee (MPC) members, voting for an early end to the pandemic stimulus.
GBP/USD Da
US Dollar Analysis & News
Markit PMI Misses Expectations
USD Back Down to Pre-FOMC Levels
Markit PMI Misses Expectations
US Markit Composite PMI for September fell to 54.5 from 55.4, whereby the services and manufacturing figures fell to 54.4 and 60.5 respectively, both missing analyst estimates. Supply chain issues and capacity shortages remain the key factors behind the slump, linked in part to the spread of the Delta variant. IHS Markit note that supply chain d
Bank of England Analysis and News
BoE Leaves Policy Tools Unchanged as Expected
Policymakers Vote 7-2 on Maintain Gilt Purchases, Ramsden Joins Saunders in Hawkish Dissent
GBP Breaks Above 1.37 on More Hawkish Statement
Bank of England left policy measures unchanged as expected with the Bank Rate remaining at 0.1% and gilt purchases at GBP 875bln. However, the vote split on gilt purchases saw Ramsden joining Saunders in calling for a cut to GBP 860bln. Alongside th
FTSE 100, BANK OF ENGLAND POLICY DECISION, NEWS AND ANALYSIS:
The FTSE 100 index has been climbing for most of this week and the Bank of England’s monetary policy committee will likely consider it a job well done if London stocks and GBP are stable after its announcement today.
A hawkish tilt cannot be ruled out but the Bank is more likely to focus on stability and avoiding a major market reaction.
BANK OF ENGLAND TO FOCUS ON STABILITY
Torn two ways by an above