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Oil prices slip - EMEA brief 20 Aug



  • Asia shares inch up with yuan ahead f Sino - US talks. 
  • UK minsters release their first ‘no deal’ Brexit documents on Thursday in an effort to prepare for a “worst possible” outcome.
  • Persimmon results are expected tomorrow, with many in the sector looking to the release as a barometer for the wider housing sector and how a rising inflation rate will affect the market.
  • Iran has stressed to OPEC over the weekend that no other member country should take up the slack for reduced oil exports in the face of Trump imposed US sanctions. Oil prices slip on concerns over slowing economic growth

2018-08-20 08_19_14-Trading Blog _ IG Community.pngAsian overnight: A mixed start to the week for Asian markets has seen the Chinese and Hong Kong markets outperform, while Japanese indices were the big underperformer of the session, remaining in the red into the close. Markets are continuing their short term rebound with US Index Futures and the wider Asian markets trading firmer this morning. Optimism that meetings scheduled in late August and November, between China and US officials, will yield some resolve to the current trade war debacle is providing some of the risk on sentiment. A quiet calendar meant that much of the focus will be on the US-China trade talks, which kick off on Wednesday.

UK, US and Europe: A quiet day on the data front sees a market focus on this morning's Bundesbank monthly report, alongside appearances from the Fed’s Bostic and Bundesbank’s Weidmann. As the corporate earnings draw to a close, there will also be less of a focus on earnings reports as a key driver of price action. Thus look out for any updates on talks between the US and China, alongside any updates on the Turkish story.

South Africa:  The US dollar has softened somewhat to help lift precious metal prices off their worst levels of the year. The rand has in turn managed to claw back some short term strength against the greenback and the majors. Tencent Holdings has rebounded 3.1% in Asia this morning, suggestive of a positive start for major holding company Naspers. BHP Billiton is up 1.3% in Australia, suggestive of a positive start for local diversified mining counters. 

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

2018-08-20 08_15_49-Forex Economic Calendar.png

Source: Daily FX Economic Calendar

Corporate News, Upgrades and Downgrades

  • NMC Health saw a 19% rise in first-half profit, with the firm increasing revenues from Middle East hospitals. Net profit for the first six months of the year rose to $116.7m, while revenue increased to $932.0m (+20%). Patients rose by 20% in the healthcare division, with bed occupancy rates rising to 69.9%.
  • AngloGold Ashanti Interim results showed adjusted headline earnings of $85m, or 21c (US) per share versus a loss of $93m, or 23 US Dollar cents per share in the first half of 2017. Increases in adjusted headline earnings were due mainly to the improved operating performance and the higher gold price. "
  • Sasol FY18 results  showed headline earnings per share to have declined by 23%.

CVS Group upgraded to outperform at RBC
KAZ Minerals upgraded to hold at Liberum
RBS upgraded to buy at Citi
United Internet upgraded to buy at HSBC

Boozt downgraded to hold at Berenberg

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