Jump to content

Will 2018's turbulence continue into the New Year? - EMEA Brief 31 Dec



  • China's stock market leads 2018 losses with both major indexes, the Shanghai composite and the Shenzhen component each facing annual declines of over 24%.
  • 2018 saw both Australia and Hong Kong's benchmark indexes face annual declines. The ASX 200 falling 6.9% compared to its 2017 closing, whilst the Hang Seng index saw around a 13% decline compared to 2017. 
  • China's manufacturing sector contracted for the first time in two years.. The official Purchasing Manager's Index reporting at 49.4, falling short of the 49.9 prediction. 
  • The ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Pacific (CPTPP) by seven of it's members yesterday may see further disruption to American trade in 2019. The agreement will slash tariffs among members, leaving non-CPTPP members such as the US less competitive. 
  • US stock-index futures rallied on Sunday after Trump's Tweet reported positive US-China negotiations. S&P 500 March contracts rose 0.7%, the Dow climbed 0.8% and Nasdaq futures increased 0.9%.

Asian overnight: Bangladesh Prime Minister Sheikh Hasina secured her third consecutive term with landslide victory. Hasina's party and it's allies won 288 out of 300 parliamentary seats but opposition calls for investigation into vote-rigging allegations. 

UK, US and Europe: Paris fire this weekend most recent result of Yellow vest protesters  anger over inequality and the high cost of living. After resisting demands to reinstate wealth tax President Emmanuel Macron's government is scrutinizing the tax situation of business leaders and state they will take measures to force them to pay their taxes in France if necessary. Bexit deadline may be forced back until as late a july, warn both members of the Conservative and labour parties, if May fails to deliver vote in favour of her proposal. 

South Africa:  Polls close in vote for new Democratic Republic of Congo president. Delays caused by electronic voting machines caused further frustration after 2 year wait for the election. 

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


Source: Daily FX Economic Calendar

Corporate News, Upgrades and Downgrades

  • Sears announcement to increase store closures from 40 to 80 by late march 2019, stocks saw resulting slip of 2.24%.

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.


Recommended Comments

There are no comments to display.

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Create New...