Jump to content

Emerging market concerns continue - EMEA brief 06 Sep

Sign in to follow this  
JamesIG

  • 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 physical demand, whilst also helped by dollar weakness.

Asian overnight: Emerging market concerns continued to weigh on markets overnight, while the bruising handed out to US tech stocks also bore down on bullish sentiment. Tokyo, Hong Kong and Australia all fell, but there was one bright spot as the CSI 300 rose 0.4%. Keep an eye on UK utilities as Ofgem proposes an energy price cap that is the biggest intervention in the UK energy market since privatisation in the 1980s.

UK, US and Europe: US ADP numbers (delayed by a day due to the Labor Day holiday) and the ISM non-manufacturing number will be the main events today, ahead of non-farm payrolls tomorrow. Emerging market jitters will be watched closely, as will the ongoing strength in the US dollar.

Economic calendar - key events and forecast (times in BST)

2018-09-06 07_51_39-Forex Economic Calendar.png

Source: Daily FX Economic Calendar

1.15pm – US ADP report (August): 187K jobs expected to have been created, from 219K a month earlier. Markets to watch: US indices, USD crosses
3pm – US ISM non-mfg PMI (August): forecast to rise to 56 from 55.7. Markets to watch: US indices, USD crosses
4pm – US EIA crude inventories: forecast to rise to -0.88M from -2.6M. Markets to watch: WTI and Brent

Corporate News, Upgrades and Downgrades

  • Dixons Carphone reported flat like-for-like revenues in Q1, hit by difficulties in mobile phones, although consumer electronics were boosted by World Cup demand. Full-year pre-tax profit guidance was maintained at £300 million.  
  • McCarthy & Stone has reduced its full-year operating profit forecast, due to weaker consumer spending and economic uncertainty. The firm now expects full year operating profit of £65-73 million, from the previous estimate of £65-80 million. 
  • Melrose said that it suffered an operating loss of £256 million for the first half, down from a profit of £58 million. Trading for the second half so far remains in line with expectations. 

BNP Paribas Upgraded to Hold at Berenberg
KAZ Minerals Upgraded to Equal-weight at Morgan Stanley
Enel Upgraded to Buy at Goldman

Scor Downgraded to Hold at SocGen
Bodycote Downgraded to Hold at Liberum
IMI Downgraded to Sell at Liberum

IGTV featured video

 

Information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary

Sign in to follow this  


0 Comments

Recommended Comments

There are no comments to display.

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
You are posting as a guest. If you have an account, please sign in.
Add a comment...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Blog Statistics

    • Total Blogs
      3
    • Total Entries
      586
  • Latest Forum Topics

  • Our picks

    • A US-China trade deal?; hope for Brexit breakthrough; IMF updates on economic outlook - DailyFX Key Themes
      UK Prime Minister Boris Johnson and his Irish counterpart Leo Varadkar stirred hope when they both offered enthusiasm after their meeting, saying there was a “pathway” forward as they discussed the contentious border. That was followed by a meeting between the EU’s main negotiator Michel Barnier and UK Brexit minister Stephen after which it was stated they 'look forward to these intensified discussions in the coming days'. Though nothing material has yet been agreed to, this seems like a meaningful break owing to the language alone. Neither side has voiced confidence in their discussions for some time, so this does represent a significant change. 
      • 0 replies
    • Dividend Adjustments 14 Oct - 21 Oct
      Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 14 Oct 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. 
      • 0 replies
    • Trade wars; recession fears grow; gold's position - DailyFX Key Themes
      We have been unofficially engaged in a global trade war since March 2018. That is when the United States moved forward with a tariff on imported metals (steel and aluminum) from any destination outside of the country.

      As it currently stands, we are still awaiting another wave of products receiving a hefty tariff rate upgrade in approximately two months’ time while talks are set to resume on Thursday between the two parties. That said, reports over the weekend indicated China was not impressed with the Trump administration’s most recent efforts to find middle ground.
      • 0 replies
×
×