Jump to content

Equities surge on trade talks progress; Oil rises - EMEA Brief 9 Jan

Sign in to follow this  
GeorgeIG

  • The US government remains in shutdown as Donald Trump addressed the nation yesterday on border security in an attempt to gain support and funding for his wall, claiming that there is a "Humanitarian and National Security crisis" in the US. 
  • A positive session for US equities yesterday amid US-China trade discussions optimism, the S&P increased by 0.97% whilst the Nasdaq rose 1.1%. The Dow climbed 250 points, as it registers its first three day positive streak since November last year.
  • Asian shares also rallied due to the trade talks progress, the Shanghai Composite and Japan's Topix both rose by around 1.1%. Adding to this, Australia's ASX index climbed 1% whilst the biggest percentage increase came from Hong Kong's Hang Seng, which gained 2.4%.
  • Oil prices followed the positive results from equities and increased by over 1%, WTI crude breached $50 per barrel for the first time since December whilst Brent was up 1.3%.
  • Sterling and the Euro both appreciated against the Dollar, with the pound up 0.2% to $1.2741 followed by the Euro which is also up 0.2% to $1.1466
  • Flights at London's Heathrow airport were temporarily grounded yesterday evening as the military were called in after sightings of a drone, this is the second time in two months a drone has halted flights at major UK airports. 

UK, US and Europe: Investors are becoming more positive on the outlook of the global economy after somewhat recovering from the last years bear market, which was the worst year we have seen for equities since the financial crisis. Trade talks between the US-China are progressing which has caused equities to rally, especially US tech companies. FAANG stocks have experienced huge increases between Christmas Eve through to Tuesday's close with Netflix and Amazon being the biggest gainers, surging by 27% and nearly 37% respectively. Ryan Nauman, market strategist of Informa Financial Intelligence, has explained that "investors noticed that the FAANG stocks are solid companies and their valuations came down a lot after the big sell-off" and also alluded to the correlation between trade talks and performance of these stocks.

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

image.png

Source: Daily FX Economic Calendar

Corporate News, Upgrades and Downgrades

  • Reports are emerging that Apple is cutting production of its iPhone by 10% between January and March, this comes after the company reduced its revenue projections for 2019.
  • Ted Baker announce that retail sales increased by 12.2% for the five week Christmas period to January the 5th, with online sales leading the way by increasing 18.7%.
  • Saisnbury's posted disappointing Christmas sales this morning as like-for-like performance slipped by 1.1% over the Christmas period, with the retailing indicating its decision to reduce promotional activity has adversely impacted sales.
  • Another retailer to post concerning results this morning is Mothercare, as like-for-like sales fall by 11% for the 13 week period to the 5th of January. 

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.

Your content will need to be approved by a moderator

Guest
You are commenting 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
      347
  • Our picks

    • Gloomy Days Ahead as IMF Cuts Global Forecasts - EMEA Brief 22 Jan
      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.
      • 0 replies
    • Bullishness settles - APAC brief 22 Jan
      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 the market too. But almost universally yesterday, financial markets traded on markedly lower activity. The ultimate result was an overall down day for stocks, a mixed day for bonds, a tinge of a bid for safe-haven currencies, while commodities were higher underpinned by well-supported oil prices.

      ASX set for flat start: SPI futures are positioned for the ASX200 to open flat-to-very-slightly-higher come today's open. It's a resilient market at present, with the trend line derived from recent lows looking clean and dutifully respected. The bulls guided the-200 above the 5900-mark for the first time in roughly two months yesterday. As widely expected, the market met resistance at the index's 200-day EMA around 5909 during intraday trade, registering a daily high only a skerrick above that point. Yesterday’s daily candle indicates one slightly more vulnerable to bearish control in the very short-term: the sellers overwhelmed the buyers into the back end of the day, bringing about a close in the green, but well-off the day's high.
      • 0 replies
    • Dividend Adjustments 21 Jan - 28 Jan
      Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 21 Jan 2019. If you have any queries or questions on this please let us know.
      • 0 replies
  • Latest Forum Topics

×