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

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MichaelaIG

  • 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)

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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%.

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@MichaelaIG,

The IG Analyst on the - Outlook 2019: Gold could return 25% next year - video must have seen my 'Gold - Potential Long Trade' thread on the IG Community. He seems to have been inspired by my posts!

LOL

😂

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