Our Picks
Top content from across the community, hand-picked by us.
Asian Markets Off 7-Month Peak - EMEA Brief 08 Apr
Guest JoeIG posted a blog entry in Market News,
Asian Pacific markets were mixed on afternoon trading, edging off seven-month peaks as investors digested a rebound in U.S. jobs data and reports of more progress in the trade negotiations between Washington and Beijing, but still cautious on the outlook of the global economy and the U.S. earnings season.
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JamesIG,
A “Goldilocks” end to the week: APAC brief - 8 Arpil
MaxIG posted a blog entry in Market News,
A “Goldilocks” end to the week: Sentiment was nicely boosted to end the week last week. US Non-Farm Payrolls printed as closely to a so-called "goldilocks" figure for risk assets as you're ever liked to see. The data revealed the US economy added 196,000 jobs last month, against an expected figure of 172,000. It was enough to keep the unemployment rate to its very low levels of 3.8 per cent. But the real kicker for market-bulls was the earnings component: wage growth missed estimates, revealing a monthly increase of 0.1 per cent, versus expectations of a 0.3 per cent expansion. The result from the NFPs achieved two things: a reassurance that growth in the US economy, while possibly late cycle, is still solid; and inflationary pressures coming from higher wages remain subdued.
Risk appetite climbs: Equities and other risk barometers were the major beneficiaries of the "goldilocks" US labour market data. Cyclicals performed well on Wall Street, as the S&P500 sustained its focused climb towards record-highs. Credit spreads narrowed too, as yield was sort out in fixed income markets. The VIX fell into the 12 handle, as fears of a sharp and imminent economic slow-down abated. And US Treasury yields remained quite steady, as the likelihood of a Fed rate cut before the end of 2019 were unwound slightly. The dynamic has led to a great deal of positivity across global equities to begin the new week, with futures markets ubiquitously in the green.
Risk appetite climbs: Equities and other risk barometers were the major beneficiaries of the "goldilocks" US labour market data. Cyclicals performed well on Wall Street, as the S&P500 sustained its focused climb towards record-highs. Credit spreads narrowed too, as yield was sort out in fixed income markets. The VIX fell into the 12 handle, as fears of a sharp and imminent economic slow-down abated. And US Treasury yields remained quite steady, as the likelihood of a Fed rate cut before the end of 2019 were unwound slightly. The dynamic has led to a great deal of positivity across global equities to begin the new week, with futures markets ubiquitously in the green.
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Picked By
MaxIG,
"Flexible" Brexit proposed by Tusk - EMEA Brief 05 April
MichaelaIG posted a blog entry in Market News,
Donald Tusk has proposed a 12-month "flexible" Brexit extension date which would allow the UK to leave once a deal has been approved with the 12 months. The proposal would first need to be approved at a summit next week.
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JamesIG,
Positioning for the week’s climax - APAC brief 4 April
MaxIG posted a blog entry in Market News,
Positioning for the week’s climax: A little water-treading, as all eyes turn to Washington this weekend. And for two-reasons, really: highly anticipated trade-talks between the Trump Administration and Chinese officials – which includes Vice Premier Liu He; and the release of US Non-Farm Payrolls data by the US Bureau of Labor Statistics. Both promise to be potentially market moving events. Fundamentally, both events come in one-and-two as the week’s most significant macro-economic stories. How each unfolds will provide market participants with some key insights into the financial world – as it stands now and into the future. Is the US economy working to full capacity? Can the US Fed keep stay safely on the sidelines? What’s the potential for a global growth rebound?
Stocks trade on low activity: With some crucial information promising to be revealed relating to these questions out of these events, financial markets in the last 24 hours have traded on a let’s wait and see mentality. Wall Street traded mixed: the S&P500 hovered in and out of “the green”, as the momentum in US tech stocks stalls. European equities, on balance, pulled back throughout the day, unaided by some weak German economic data. Asian trade was also lacklustre, with the Nikkei trading flat, the Hang Seng down, but Chinese indices generally clocking gains. Despite the mixture of results, the constant was generally a lack of volume in stock-markets, likely symptomatic of a market watching vigilantly for its next cue.
Stocks trade on low activity: With some crucial information promising to be revealed relating to these questions out of these events, financial markets in the last 24 hours have traded on a let’s wait and see mentality. Wall Street traded mixed: the S&P500 hovered in and out of “the green”, as the momentum in US tech stocks stalls. European equities, on balance, pulled back throughout the day, unaided by some weak German economic data. Asian trade was also lacklustre, with the Nikkei trading flat, the Hang Seng down, but Chinese indices generally clocking gains. Despite the mixture of results, the constant was generally a lack of volume in stock-markets, likely symptomatic of a market watching vigilantly for its next cue.
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Picked By
MaxIG,
Palladium is one of the most searched assets on the IG platform this week
JamesIG posted a topic in Commodities,
One of the most searched assets on the IG platform has been Palladium this week, so I thought I'd just give a run down of a few things which may be useful to help your trading. Some of these are basics for the new trader, but there may be one of two things which you find useful.
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Picked By
JamesIG,
Post in Indices
Caseynotes posted a post in a topic,
"Both the FXCM and COT confer that small speculators and retail (sameish) decided that the week starting 2nd of Jan was the time to go short on the Dow and have been flogging that horse ever since."
Picked By
JamesIG,
A new Bitcoin April Short Squeeze- EMEA Brief 04 Apr
Guest IG-Andi posted a blog entry in Market News,
Bitcoin’s chart is finally generating some interest in technical traders as prices are slightly down from Wednesday’s record highs. April last year saw a “short squeeze” that had the price of Bitcoin jump from $6,700 to $8,000 in a single move.
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Guest,
Growth fears ease; risk taking subdued - APAC brief 4 April
MaxIG posted a blog entry in Market News,
Growth fears ease; risk taking subdued: Risk appetite wasn't terribly high overnight. But in saying this, the persistent, vexatious concerns regarding the global growth outlook has continued to abate. Markets have become used to modifications in the growth outlook manifesting in a powering of risk-on behaviour. Given the economic backdrop, the reasons for this are pretty intuitive. Just as far as last night's trade, though, this relationship didn’t hold quite so strongly. There were clear signs that market participants were tempering some of their worst fears about global growth. However, risk-assets didn't respond in the way that they have in the recent past. Not that this should be looked into too much; it's just been a curious truth that's lead to a touch of head scratching last night.
More good news than bad: It would be wrong to suggest it was a bad day for equity markets. More, that given some of the news in the market, and the cross-asset price action, a stronger move higher might have been expected. The macro-development that captured most attention was news of "new progress" in the US-China trade-war, that boosted hopes of a breakthrough in upcoming trade-negotiations in Washington. In a muted response, Wall Street has edged a trifle higher last night, with the S&P hovering around the 2870 mark. European indices performed a little better, following some strong Services PMI numbers, while Asian indices probably led the pack in the last 24-hours.
More good news than bad: It would be wrong to suggest it was a bad day for equity markets. More, that given some of the news in the market, and the cross-asset price action, a stronger move higher might have been expected. The macro-development that captured most attention was news of "new progress" in the US-China trade-war, that boosted hopes of a breakthrough in upcoming trade-negotiations in Washington. In a muted response, Wall Street has edged a trifle higher last night, with the S&P hovering around the 2870 mark. European indices performed a little better, following some strong Services PMI numbers, while Asian indices probably led the pack in the last 24-hours.
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Picked By
MaxIG,
Bitcoin rally pushes other digital currencies higher - EMEA Brief 03 Apr
Guest DanielaIG posted a blog entry in Market News,
The price of Bitcoin jumped 23% on Tuesday, surpassing the $5,000 line and hitting its highest level in almost 5 months in just under an hour. This sudden surge caught investors off guard as Cryptocurrencies' volatile sessions, which were popular at the beginning of last year, have now become a rare occasion. The trigger of this rally is unknown, which is common with unregulated assets, but other digital currencies followed suit, as Ethereum surged 12% and Ripple gained 6.5%.
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Guest,
The biggest day of the (economic) year - APAC brief - 3 Apr
MaxIG posted a blog entry in Market News,
The biggest day of the (economic) year: The Australian economy garnered significant attention yesterday. Arguably, it was the biggest day on the economic calendar we’ll see this year. Insights into both the future of monetary and fiscal policy don’t often come on the same day.
But yesterday it did: the RBA delivered their monthly decision on Australian interest rates; and the Federal Government handed down its latest budget. The price action in financial markets has thus far been limited – though, granted, we wait for the ASX to open this morning to witness the stock market response to the budget. At least from a purely intellectual standpoint though, both events have given market-buffs enough to chew on, and potentially frame future trading opportunities.
But yesterday it did: the RBA delivered their monthly decision on Australian interest rates; and the Federal Government handed down its latest budget. The price action in financial markets has thus far been limited – though, granted, we wait for the ASX to open this morning to witness the stock market response to the budget. At least from a purely intellectual standpoint though, both events have given market-buffs enough to chew on, and potentially frame future trading opportunities.
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Picked By
JamesIG,
Golden Cross v Inverted Yield Curve
Caseynotes posted a topic in General Trading Strategy Discussion,
The battle of fundamental Vs technical continues: "Many have been pointing out the Golden Cross in the S&P over the last few days which is of course bullish while at the same time the recent inverted yield curve possibly predicts recession. You wait ages for a signal then two come at once but in opposite directions."
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Picked By
JamesIG,
Lyft Fails to Lift-off on Second Day of Trading - EMEA Brief 02 Apr
GeorgeIG posted a blog entry in Market News,
Lyft, the most recent high profile IPO, shares have seen huge trading activity over the first two days of trading as over 41.5 million shares were traded, well over the 32.5 million offered in the IPO. However, the ride-hailing company saw it's shares slump 12% on its second day of trading down to $69.01, below the official IPO price of $72. The downturn comes after the stock rallied to a high of $88.60 on Friday.
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Picked By
GeorgeIG,
APAC brief 2 April
MaxIG posted a blog entry in Market News,
Today was a good day: The term risk-on can be a little overused in financial markets at times. When short-on-time, and confronted with something complex, suggesting it’s been a “risk-on” or “risk-day” is a simple way to say market participants feel pretty good. At the risk of oversimplifying: the first day of the new quarter was certainly a “risk-on” day. It’s likely given the context of yesterday’s trade that makes this so. Concerns about a global economic slowdown have been their most sensitive in years. So: to receive a handful of better than expected economic data, such as we did in the last 24 hours, it makes things in the whole appear much better than if they were to be judged just in the particular.
The story has changed (for now): It’s probably a part of that compulsion market participants have – pundits especially – to infer a trend from a tiny-bit of information. The justification is reasonable enough: most people understand the world through stories, rather than hard-data and analysis. To take a piece of information, infer a trend, and then tell a story with it is far more comprehensive (and saleable) than just enumerating some soul-less facts. It’s with this (partial) assumption in mind, the first day of the new week, month and quarter can be viewed. For all its intricacies, complexities and ambiguities, it was the most “risk-on” day we’ve seen in a short-while; and the hope is now that this is the beginning of a significant reversal in trend.
The story has changed (for now): It’s probably a part of that compulsion market participants have – pundits especially – to infer a trend from a tiny-bit of information. The justification is reasonable enough: most people understand the world through stories, rather than hard-data and analysis. To take a piece of information, infer a trend, and then tell a story with it is far more comprehensive (and saleable) than just enumerating some soul-less facts. It’s with this (partial) assumption in mind, the first day of the new week, month and quarter can be viewed. For all its intricacies, complexities and ambiguities, it was the most “risk-on” day we’ve seen in a short-while; and the hope is now that this is the beginning of a significant reversal in trend.
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Picked By
MaxIG,
Post in Indices
Caseynotes posted a post in a topic,
"As mentioned in the EMEA brief " S&P 500 gained 0.7% to 2,834.40 - posting its best performing quarter since 1998 as it rose 13.1% for the period." Yet SSI for S&P is 69% short, as it has been for all of March (at least, see previous posts)."
Picked By
JamesIG,
Post in Brent Crude is following my roadmap
Mercury posted a post in a topic,
Where is oil going? "A break of the narrowing channel will seal it for me but there are better opportunities around if stock resume a bear move and EURUSD decides on a rally. That said if Oil is a first mover I might get in..."
Picked By
JamesIG,
China's Manufacturing PMI Beats Expectations - EMEA Brief 01 Apr
Guest JoeIG posted a blog entry in Market News,
Confidence returns to the markets as Asian stocks rallied on Monday over positive Chinese factory gauges and signs of progress in US-China trade talks boosted investor sentiment. Manufacturing activity in China expanded at its fastest pace in eight months in March, reading 50.8 and beating analysts' expectations of 49.9.
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Guest,
Trade Talks Restart - EMEA Brief 29 Mar
Guest JoeIG posted a blog entry in Market News,
US-China trade talks have restarted in Beijing as U.S. Treasury Secretary Steven Mnuchin said on Friday that he had a "productive working dinner" the previous night. Investors are hopeful that progress will be made to resolve the bitter trade dispute between the two largest global economies, amid growing concern of a slowing economy as the bond market signals a possible incoming recession.
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Guest,
APAC brief - 21 Mar
MaxIG posted a blog entry in Market News,
Relief-on? It’s a trifle difficult to describe last night’s trade simply. On the surface, risk assets are being reasonably well supported, and there are a few signals suggesting market participants are in a slightly more bullish state of mind. Rather than “risk-on” however, one might describe the last 12 hours in markets as “relief-on”. This is mostly due to the fact that, at least for now, the global bond market rally has stalled. Markets had worked themselves into a frenzy this week, fretting over the meaning and implications of the precipitous run-higher in safe-haven government debt. It sparked all sorts of repositioning and knee-**** activity in markets, pulling price action around its massive gravity, and inspiring a general anti-risk sentiment.
It’s been the speed, not the direction: The shocking part of the bond market rally – and let’s recall, for the many folk out there who aren’t bond-market buffs, that when bond prices rally, bond yields ¬fall – is not that it is necessarily happening at all. Instead, it is a matter of how quickly it is all happening, and what this rapid shift in momentum means all-in-all. The more benign reasoning is that it’s a basic repositioning, accelerated by technical factors, in response to the dovish turn central bankers have adopted lately across the globe. The direr interpretation, however, was that the swift shift in bond pricing signalled a market pricing in a major economic slow-down, maybe even a recession, in the global economy.
Markets getting ahead of themselves: Both narratives are interrelated and true to some extent. Interest rates expectations have been sliced-down very quickly recently, courtesy of course, to a marked deterioration in global economic growth conditions. But these things take time: hence, the move in bonds seem disproportionate. This isn’t an invitation to rejoice, by any means. Risks in the long term to the global economic outlook are ample, especially as it relates to Chinese and European growth. But to throw in the towel now on global macro-economic outlook would be premature, and potentially wasteful: the actions of central banks are skewing risk-reward in favour of the risk takers, meaning taking a long bias on certain equity indices ought not to be discounted.
The risk-reward balance: A skerrick of this view manifested in market activity last night. Wall Street is up and trending higher, just on an intraday basis, into the close. Most certainly, the fall in bond yields, driven by the prospect of looser monetary policy across the globe, is attracting flows into stocks. It's a continuation of the perennial battle in financial markets: the desire to take risk when financial conditions dictate its attractive to do so, versus the desire to preserve capital when the economic growth environment is degrading. Policy makers are fighting hard to engender a confidence that the former can be trusted and will lead to an improvement in the latter.
It’s been the speed, not the direction: The shocking part of the bond market rally – and let’s recall, for the many folk out there who aren’t bond-market buffs, that when bond prices rally, bond yields ¬fall – is not that it is necessarily happening at all. Instead, it is a matter of how quickly it is all happening, and what this rapid shift in momentum means all-in-all. The more benign reasoning is that it’s a basic repositioning, accelerated by technical factors, in response to the dovish turn central bankers have adopted lately across the globe. The direr interpretation, however, was that the swift shift in bond pricing signalled a market pricing in a major economic slow-down, maybe even a recession, in the global economy.
Markets getting ahead of themselves: Both narratives are interrelated and true to some extent. Interest rates expectations have been sliced-down very quickly recently, courtesy of course, to a marked deterioration in global economic growth conditions. But these things take time: hence, the move in bonds seem disproportionate. This isn’t an invitation to rejoice, by any means. Risks in the long term to the global economic outlook are ample, especially as it relates to Chinese and European growth. But to throw in the towel now on global macro-economic outlook would be premature, and potentially wasteful: the actions of central banks are skewing risk-reward in favour of the risk takers, meaning taking a long bias on certain equity indices ought not to be discounted.
The risk-reward balance: A skerrick of this view manifested in market activity last night. Wall Street is up and trending higher, just on an intraday basis, into the close. Most certainly, the fall in bond yields, driven by the prospect of looser monetary policy across the globe, is attracting flows into stocks. It's a continuation of the perennial battle in financial markets: the desire to take risk when financial conditions dictate its attractive to do so, versus the desire to preserve capital when the economic growth environment is degrading. Policy makers are fighting hard to engender a confidence that the former can be trusted and will lead to an improvement in the latter.
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Picked By
MaxIG,
Turkish lira - surge in swap rates & the impact for overnight funding
JamesIG posted a blog entry in Market News,
The cost of borrowing Lira overnight on the swap market exceeded 1000% because local banks are under pressure to not provide liquidity to foreign investors who want to bet against the currency.
Please ensure that you are happy with your positions in TRY going into 10pm GMT, and please remember that swap points are unstable.
Please ensure that you are happy with your positions in TRY going into 10pm GMT, and please remember that swap points are unstable.
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- 2 replies
Picked By
JamesIG,
Capital Drilling Ltd - small cap mining - chairman interview
JamesIG posted a topic in Shares and ETFs,
On the back of a recent client request our IGTV team sat down with Jamie Boyton, chairman of Capital Drilling, to discuss recent earnings and their longer term business plans, dividend strategy, and future outlooks. Jeremy also takes a look at recent price action and any potential trading opportunity, whether you think that's a buy, hold, or sell.
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Picked By
JamesIG,
The Turkish lira squeeze - EMEA Brief 28 Mar
Guest IG-Andi posted a blog entry in Market News,
Gold prices edged higher after falling on Wednesday. Globally declining treasury yields could increase demand for the yellow-metal if a stock rout were to take place.
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Guest,
APAC brief 28 Mar
MaxIG posted a blog entry in Market News,
The see-sawing market: The one-day-up, one-day-down pattern of trade on Wall Street continues. It’s playing-out so elegantly, it’s almost absurd. Yesterday was a “down” day, as market participants evacuated equity markets to seek shelter in safe-haven government bonds. In contrast to the day prior, breadth has been universally low, with practically every sector in the S&P500 trading lower. The same simple binary that’s driven market activity for weeks is behind this dynamic: a competition between fears regarding the slowing global growth outlook, and the appeal of risk taking in a financial market environment plagues by tumbling yields. The pattern is showing few signs of abating and speaks of a market that is consolidating before a clearer-cut direction is formed.
Asia set for mixed trade again: Wall Street’s lead is manifesting as a mixed-picture for Asian markets today, according to futures. Provided this materializes, it will be an extension of the region’s equities own theme. Yesterday’s trade was tepid for Asia too, resulting in an ultimately flat day for the ASX200, a solid day for Chinese and Hong Kong markets, and soft day for the Nikkei. As it presently trades, SPI Futures are suggesting that the ASX200 will open slightly lower this morning, if not flat; as will the Hang Seng and Nikkei; but the CSI300 ought to open a touch higher – though this is based on a future’s price that reflects price action from yesterday evening’s trade.
Asia set for mixed trade again: Wall Street’s lead is manifesting as a mixed-picture for Asian markets today, according to futures. Provided this materializes, it will be an extension of the region’s equities own theme. Yesterday’s trade was tepid for Asia too, resulting in an ultimately flat day for the ASX200, a solid day for Chinese and Hong Kong markets, and soft day for the Nikkei. As it presently trades, SPI Futures are suggesting that the ASX200 will open slightly lower this morning, if not flat; as will the Hang Seng and Nikkei; but the CSI300 ought to open a touch higher – though this is based on a future’s price that reflects price action from yesterday evening’s trade.
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Picked By
MaxIG,
EU announces new copyright laws that could affect tech giants - EMEA Brief 27 March
Guest DanielaIG posted a blog entry in Market News,
A three-year legal battle has concluded with the EU enforcing stricter copyright laws that could affect the business models of tech giants like Google and Facebook. The new reform plans to protect artists and publishers whose work has been widely spread on the internet, by making the tech firms responsible for detecting and removing content that infringes copyright law. Google will has been very critical about the new reform saying that it will restrict freedom of expression, as its video-sharing platform YouTube will be one of the most affected by these changes. Google shares were down 0.63% at the close of Tuesday after the new laws were announced.
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Guest,
APAC brief - 27 Mar
MaxIG posted a blog entry in Market News,
Broad-based based bounce in stocks: It was a buy the dip day yesterday, judging by price action in global risk-assets. As has been the theme this week, there wasn’t any meaningful macro-news to change market participants behavior. So: an explanation for the (almost) universally solid day for global equities ought to be chalked-up to internal market mechanics. What this may imply for the longer run is a touch obscure. This market is trading much in the way a plane rights-itself after some brief, but heavy turbulence. Some rough times must surely lie ahead once again, if not for the simple matter that fundamentals haven’t changed. Market participants will therefore remain glued to any developments that may reveal new truths about global growth.
Very little “new” news: There weren’t any such stories out last night. Outside the echoes of last week’s dovish Fed-tilt, European growth concerns, and talk of inverted yield curves, voices portending doom in financial markets were apparently much quieter. Ever the experts in hindsight, the collective wisdom of market participants seemed more interested in rationalizing away their previously held fears. This could be justified, and at that, telling in and of itself: traders are searching for reason to keep taking risks, and maintaining a bullish temperament. It certainly showed; not just in equities, but other asset classes. Bond yields climbed, at least momentarily ending their rout, and growth-proxy currencies lifted as currency traders sold-out of the popular safe havens.
Very little “new” news: There weren’t any such stories out last night. Outside the echoes of last week’s dovish Fed-tilt, European growth concerns, and talk of inverted yield curves, voices portending doom in financial markets were apparently much quieter. Ever the experts in hindsight, the collective wisdom of market participants seemed more interested in rationalizing away their previously held fears. This could be justified, and at that, telling in and of itself: traders are searching for reason to keep taking risks, and maintaining a bullish temperament. It certainly showed; not just in equities, but other asset classes. Bond yields climbed, at least momentarily ending their rout, and growth-proxy currencies lifted as currency traders sold-out of the popular safe havens.
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