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ArvinIG

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Blog Entries posted by ArvinIG

  1. ArvinIG
    Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 30th August 2021. If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect  your positions, please take a look at the video.

    NB: All dividend adjustments are forecasts and therefore speculative. A dividend adjustment is a 
    cash neutral adjustment on your account.
                                                                                               
    Special Dividends
    Index
    Bloomberg Code
    Effective Date
    Summary
    Dividend Amount
    TOP40
    GLN SJ
    01/09/2021
    Special Div
    0.04 USc
    UKX
    GLEN LN
    02/09/2021
    Special Div
    0.04 USc
    RTY
    RMR US
    02/09/2021
    Special Div
    7
    SPX
    PXD US
    02/09/2021
    Special Div
    1.51
     
    How do dividend adjustments work? 
    This 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.
  2. ArvinIG
    Dow Jones and Nasdaq 100 suffering as Fed faces credibility test; will a 75-basis point rate hike, or more, restore risk appetite next? Both indices are trying to confirm breakouts under key support.

    Source: Bloomberg   Indices Shares Central bank Dow Jones & Company Risk Inflation  
    The Dow Jones and Nasdaq 100 have been falling since an unexpectedly stronger US inflation report crossed the wires last week. This has resulted in a rapid repricing of Federal Reserve rate hike expectations after the central bank began hinting at a pause in September just weeks ago. The markets now anticipate a whopping 75-basis point bump on Wednesday instead of 50.
    It seems like the central bank is facing a credibility test. Normally, a softer-than-expected rate hike would typically trigger a boost in risk appetite and fuel stocks higher. This time might be different. That is because such an outcome could be interpreted as the Fed failing to take adequate steps to meet its average inflation target of 2%, causing markets to lose faith in the central bank doing its job and increasing uncertainty.
    As such, the Fed might do whatever it takes to restore confidence this week. A 75bp hike might just be the ticket, or perhaps even more. Last week, the Reserve Bank of Australia unexpectedly delivered a stronger-than-anticipated hike that caught traders off guard. If the Fed pulls off a similar measure and upholds its inflation target, this could bode well for risk appetite in the short run.
    Down the road, it remains tough to be fundamentally bullish US equities. The reality is that surging bond yields continue taking away the appeal of owning riskier assets. The stronger CPI report last week means higher rates from the Fed for the time being. But, if the central bank can restore faith and build up confidence, perhaps the pain in stock markets could begin cooling in the not-so-distant future.
    Dow Jones technical analysis
    Dow Jones futures have broken and closed under lows from March 2021, effectively taking out the 30512 – 30803 support zone. Confirmation is lacking at this time, so market bears ought to proceed with some caution. The February 2021 low has been exposed at 29552 as the next key support level. In the event of a turn lower, the 50- and 100-day Simple Moving Averages are still pointing lower, offering a bearish bias. These could hold as resistance, reinstating a downside focus.
    Dow Jones – daily chart

    Source: TradingView Nasdaq 100 technical analysis
    Nasdaq 100 futures close around the lows of this year so far, but prices have left behind a Doji candlestick pattern. This is a sign of indecision amid positive RSI divergence, with the latter showing fading downside momentum. Upside follow-through could spell some optimism ahead, placing the focus on the 50- and 100-day SMAs. These could reinstate the downside focus, maintaining a broader bearish bias.
    Nasdaq 100 – daily chart

    Source: TradingView

    Daniel Dubrovsky | Currency Analyst, DailyFX, San Francisco
    15 June 2022
    This information has been prepared by DailyFX, the partner site of IG offering leading forex news and analysis. 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.
  3. ArvinIG
    Dear IG Community,

    As we are approaching the statements period. We would like to share some information on UK Consolidated Tax Certificates (CTC) statements. The aim of this post is to provide you with some key information on UK CTC statements release and hopefully clear out some questions you may have.


    1) What is a CTC ?

    It is a document for UK fiscal resident clients and is used to show the dividends received in a tax year and the breakdown of the different types of instruments that have paid them (shares, ETFs, REITs)

    2) Will I receive a CTC ?

    You will receive a CTC if you have received dividends during the tax year. If you haven’t received any dividends during the tax year you won’t receive a CTC.



    CTC's will not be generated for ISA or SIPP accounts. ISA and SIPP accounts are not tax reportable, so we don’t send out any tax documents for these accounts.
    For non-UK tax residents, an Income Summary can be provided on request

    3) Where can find my CTC ?

    You will be able to view and download your CTC (in pdf format) by going to My IG > Live accounts > Statements > Annual



    4) When will the CTC be available?

    Your CTC will ideally be ready around by end of July but it can be released later on. The reason why we can’t give a clear ETA is because there is delay between the end of financial year and when the statements are ready.

    This delay is due to the wait time for incomes to reach IG, for example US ETFs incomes tend to take longer before we receive the data. IG needs to receive incomes on our extensive list of international security types . The certificates are sent once all incomes has been received at IG and classified. 


    5) What will the statement contain?

    The format this year will be the same as previous year, a line by line and summarised description of domestic and overseas income received in GBP-equivalent.
    Please be aware that we do not provide any capital gains (sometimes called P&L) statements for share dealing accounts.
    We do not generate tax statement for spread betting accounts since spread betting does not attract capital gains tax or stamp duty in the UK
    You can find further information on the link here https://www.ig.com/uk/help-and-support/accounts-and-statements/statements/what-statements-will-i-receive


    For Australian clients:

    The process is similar. We will provide you with further information once the AUS office update us on the 2022 statements.

    If you need further information please comment below.

    All the best - Arvin
     
  4. ArvinIG
    Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 8th August 2022. These are projected dividends and likely to change. IG cannot be held responsible for any changes made.
    Dividends highlighted in red include a special dividend, therefore some or all of the amount will not be adjusted. Amount in brackets is the expected adjustment after special dividends excluded (where shown on major indices). Dividend adjustments due to be posted on a bank holiday will usually be posted on the previous working day. 
    If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect  your positions, please take a look at the video.
     

    NB: All dividend adjustments are forecasts and therefore speculative.
    A dividend adjustment is a cash neutral adjustment on your account.
     
    Special Dividends
            Index
    Bloomberg Code
    Effective Date
    Summary
    Dividend Amount
    TOP40
    AMS SJ
    10/08/2022
    Special Div
    4000
       
    How do dividend adjustments work?  
    This 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.
  5. ArvinIG

    Dividend Adjustments 27th June 2022 - 4th July 2022

    By ArvinIG,


    Trading hour changes
    Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 27th June 2022. These are projected dividends and likely to change. IG cannot be held responsible for any changes made.
    Dividends highlighted in red include a special dividend, therefore some or all of the amount will not be adjusted. Amount in brackets is the expected adjustment after special dividends excluded (where shown on major indices). Dividend adjustments due to be posted on a bank holiday will usually be posted on the previous working day. 
    If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect  your positions, please take a look at the video.
     

    NB: All dividend adjustments are forecasts and therefore speculative.
    A dividend adjustment is a cash neutral adjustment on your account.
     
     
    Special Dividends
            Index
    Bloomberg Code
    Effective Date
    Summary
    Dividend Amount
    N/A
        Special Div
       
    How do dividend adjustments work?  
    This 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.
  6. ArvinIG
    Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 6th September 2021. If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect  your positions, please take a look at the video.

    NB: All dividend adjustments are forecasts and therefore speculative. A dividend adjustment is a 
    cash neutral adjustment on your account.
                                                                                               
    Special Dividends
    Index
    Bloomberg Code
    Effective Date
    Summary
    Dividend Amount
    AS51
    IFL AU
    07/09/2021
    Special Div
    0.02
    AS51
    S32 AU
    08/09/2021
    Special Div
    0.02
    RTY
    CWH US
    13/09/2021
    Special Div
    0.35
    SPX
    DVN US
    10/09/2021
    Special Div
    0.38
     
    How do dividend adjustments work? 
    This 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.
  7. ArvinIG
    Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 9th August 2021. If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect  your positions, please take a look at the video.

    NB: All dividend adjustments are forecasts and therefore speculative. A dividend adjustment is a 
    cash neutral adjustment on your account.
                                                                                               
    Special Dividends
            Index
    Bloomberg Code
    Effective Date
    Summary
    Dividend Amount
    STI
    RIO AU
    12/08/2021
    Special Div
    2.5064
    NIFTY
    GRASIM IN
    12/08/2021
    Special Div
    4
    TOP40
    AMS SJ
    11/08/2021
    Special Div
    10500
    UKX
    NXT LN
    12/08/2021
    Special Div
    110
    UKX
    RIO LN
    12/08/2021
    Special Div
    133.26
    RTY
    ECVT US
    11/08/2021
    Special Div
    3.2
    RTY
    RILY US
    12/08/2021
    Special Div
    50
    RTY
    ETH US
    16/08/2021
    Special Div
    25

    How do dividend adjustments work? 
    This 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.
     
  8. ArvinIG
    Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 12th September 2022. These are projected dividends and likely to change. IG cannot be held responsible for any changes made.
    Dividends highlighted in red include a special dividend, therefore some or all of the amount will not be adjusted. Amount in brackets is the expected adjustment after special dividends excluded (where shown on major indices). Dividend adjustments due to be posted on a bank holiday will usually be posted on the previous working day. 
    If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect  your positions, please take a look at the video.
     

    NB: All dividend adjustments are forecasts and therefore speculative.
    A dividend adjustment is a cash neutral adjustment on your account.
     
     
    Special Dividends
            Index
    Bloomberg Code
    Effective Date
    Summary
    Dividend Amount
    SPX
    EOG US
    14/09/2022
    Special Div
    1.5
     
    How do dividend adjustments work?  
    This 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.
  9. ArvinIG
    Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 30th May 2022. These are projected dividends and likely to change. IG cannot be held responsible for any changes made.
    Dividends highlighted in red include a special dividend, therefore some or all of the amount will not be adjusted. Amount in brackets is the expected adjustment after special dividends excluded (where shown on major indices). Dividend adjustments due to be posted on a bank holiday will usually be posted on the previous working day. 
    If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect  your positions, please take a look at the video.

    NB: All dividend adjustments are forecasts and therefore speculative.
    A dividend adjustment is a cash neutral adjustment on your account.
     
     
    Index
    Bloomberg Code
    Effective Date
    Summary
    Dividend Amount
    N/A
        Special Div
       
    How do dividend adjustments work?  
    This 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.
  10. ArvinIG
    The Bank of Japan is set to hold their monetary meeting across 17 – 18 January 2022, with the meeting bringing about its latest outlook on growth and inflation.

    Source: Bloomberg   Forex Bank of Japan Inflation Japan Japanese yen United States dollar   Policy tools to remain unchanged, but outlook will be in focus
    The upcoming meeting is largely expected to see the Bank of Japan (BOJ) keeping its current policy stance unchanged. This includes keeping in place its target of -0.1% for short-term rates and 0% for the 10-year bond yield, under its policy of negative interest rate policy (NIRP) and yield curve control (YCC). This comes as the country faces a fresh wave of virus resurgences, seemingly on track to surpass its virus peak in August last year.
    With Japan extending most border restrictions until end of February to tackle virus spreads, a step away from its accommodative stance seems unlikely and the BOJ has the room to exercise patience in its policy settings with inflation still way below its target. Its latest core consumer price index (CPI) figure pointed to a 0.5% increase year-on-year (YoY), compared to the central bank's goal of 2%.
    The focus for the upcoming meeting will instead lie on its latest outlook report, with fresh updates on growth and inflation expectations. While the economy continues to be on the path of recovery, global supply chain disruptions and a resurgence in Covid-19 pandemic cases pose near-term downside risks to its fiscal 2021 growth outlook. That said, any downward revision may likely be offset by an upward revision into fiscal 2022, with Japan PM Fumio Kishida’s upcoming fiscal stimulus package expected to provide some support for growth ahead.
    With the large divergence between the firms’ costs and consumer prices, further cost pass-through to consumers may also likely lead to an upward revision to inflation forecast. For now, this may still seem to be positive for Japan by pulling away from its previous struggle with deflation and the absence of any significant jump near the 2% mark may likely bring about little surprise.
     

    Source: Statistics Bureau of Japan  
    With global central banks increasingly shifting towards policy normalisation, any longer-term policy outlook guidance from the BOJ will also be on watch. While its accommodative policy is largely expected to remain near-term, the BOJ has increasingly taken some steps towards normalisation. The previous meeting saw the central bank revealing plans to scale back its purchases of corporate bonds and commercial paper after the March 2022 timeline. Recent reports suggest that there may be some discussions between policymakers on how soon they can start telegraphing an eventual interest rate hike.
    With markets riding on the belief that the BOJ may keep rates unchanged until inflation nears 2%, any hints from the BOJ meeting which challenge this view may provide a positive surprise for the yen by suggesting that the markets may have been underestimating the shift in the BOJ’s stance.
    Japan 225 riding on some cautious mood
    On the four-hour chart, an upward trendline seems to be serving as a support line for Japan 225 index, having held prices up on at least five previous occasions. That may seem to put the 28,000 level on watch. Recent bottoms are also met with higher lows on the moving average convergence divergence (MACD) indicator, suggesting that prices may attempt to go higher in the near-term. That said, the longer-term movement remains uncertain for now, considering that the index has been largely trading within a consolidation pattern since January last year. Any upside ahead may potentially face resistance at the 28,800, where prices failed to break above in two occasions over the past week.
     

    Source: IG charts USD/JPY seeing recent downward pressure
    The USD/JPY has pulled back from its recent higher highs, with a bearish MACD crossover suggesting near-term momentum to the downside. Past instances seem to suggest that USD/JPY movement may be driven by external factors, with a lesser extent coming from the BoJ meeting.
    Despite Federal Reserve (Fed) officials supporting a tighter monetary policy and US CPI at its highest level in nearly 40 years, the US dollar has been seeing some selling pressure, with market expectations having largely priced for a March’s Fed rate hike and overall three to four hikes through 2022. That said, continued climbs in the US Treasury yields may be a catalyst to limit further downside for US dollar, with the 113.10 level on watch as potential support for the USD/JPY pair.
     

    Source: IG charts   Yeap Jun Rong | Market Strategist, Singapore
    17 January 2022
  11. ArvinIG

    Dividend Adjustments 4th October 2021 - 11th October 2021

    By ArvinIG,


    Dividend Adjustment
    Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 4th October 2021. These are projected dividends and likely to change. IG cannot be held responsible for any changes made.
    Dividends highlighted in red include a special dividend, therefore some or all of the amount will not be adjusted. Amount in brackets is the expected adjustment after special dividends excluded (where shown on major indices). Dividend adjustments due to be posted on a bank holiday will usually be posted on the previous working day. 
    If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect  your positions, please take a look at the video.

    NB: All dividend adjustments are forecasts and therefore speculative. A dividend adjustment is a 
    cash neutral adjustment on your account.
                                                                                               
    Special Dividends
    Index
    Bloomberg Code
    Effective Date
    Summary
    Dividend Amount
    RTY
    LAUR US
    05/10/2021
    Special Div
    7.01
     
    How do dividend adjustments work? 
    This 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.
  12. ArvinIG
    Dear IG Community !

    We would like to provide you with information on Payments on your IG Platform.

    Please find below general information on the different payment methods that IG accepts for deposits and withdrawals.
    All this information are available on My IG > Live accounts > Deposit/Withdraw funds
    ⚠️
    Please keep in mind that for Anti-Money Laundering purposes if you are using different methods to deposit and withdraw funds you may need to verify you card/ bank account. All time frames are in business days, weekends and public holiday may delay a payment. For further information reach out to our Helpdesk.  
    For UK (more details here) :
     
    Methods
    Deposits
    Withdrawals*
    Cards
    Execution Time: Immediate
    Cost :
    - Debit : Free
    - Credit: Free Mastercard/Visa
    Minimum: £250
     
    Execution Time: 3-5 business day
    Cost : Free
     
    Bank transfer
    Execution Time : 1-3 business day
    Cost : Free
    Execution Time: 1-3 business day
    Other : Same-day sterling payment (CHAPS): £15 (Over £100 is free of charge)
     
     
    PayPal
    Execution Time: Immediate
    Cost : Free
    Minimum : £250
    (Supported currencies: GBP, USD, EUR, SGD, AUD, CAD, CHF, DKK, HKD, JPY, NOK, SEK, SGD)
    Execution Time: Within 1 business day
    Cost : Free
     
    *If you are withdrawing with a different method that you deposited your funds with, you may be asked to verify your deposit made to IG. To do so, please send a Bank Statement showing your Bank name and logo, your name and address and the transaction showing the deposit made to IG. You can upload that document on My IG > Live accounts > Verification
     
    For Australia (more details here) :
     
    Methods
    Deposits
    Withdrawals
    Cards
    Execution Time: Immediate
    Cost :
    - Debit : Free
    - Credit: 0.5% Mastercard, 1%Visa
    Minimum: A$450
    Execution Time: 3-5 business day
    Cost : Free
     
     
    Bank transfer
    Execution Time : 1-3 business day
    Cost : Free
     
    Execution Time: 1-3 business day
    Cost : Free
    Other : Same day bank transfers in Australia incur a A$15 charge (If requested before 11am (AEST).Minimum withdrawal of A$2000.For A$ withdrawals to Australian bank accounts only)
     
     
    BPay*
    Execution Time : 1-2 Business days
    Cost : Free
    Minimum: A$10
     
     
    Bank withdrawal
    Cost : Free
    PayPal
    Execution Time: Immediate
    Cost : 1% charge.
    Minimum : A$450
    (Supported currencies: AUD, USD, HKD, GBP, EUR)
    Execution Time: Within 1 business day
    Cost : Free
     

    *As BPay payments are encrypted you may be asked to verify your deposit in order to withdraw your funds. Please send a Bank Statement showing your Bank name and logo, your name and address and the transaction showing the deposit made to IG. You can upload that document on My IG > Live accounts > Verification

    We hope that you find this information useful. If you have any question, please feel free to ask on this post in the comment section ( feel free to tag @ArvinIG, @AndaIG or @MongiIG)

    All the best - Arvin
  13. ArvinIG
    Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 16th August 2021. If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect  your positions, please take a look at the video.

    NB: All dividend adjustments are forecasts and therefore speculative. A dividend adjustment is a 
    cash neutral adjustment on your account.
                                                                                               
    Special Dividends
            Index
    Bloomberg Code
    Effective Date
    Summary
    Dividend Amount
    TOP40
    AGL SJ
    18/08/2021
    Special Div
    80
    UKX
    AAL LN
    19/08/2021
    Special Div
    80 (Divi in US cents)
    RTY
    MNRL US
    19/08/2021
    Special Div
    21
    RTY
    HL US
    20/08/2021
    Special Div
    0.75
    RTY
    TAST US
    24/08/2021
    Special Div
    41

    How do dividend adjustments work? 
    This 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.
  14. ArvinIG
    Find out what to expect from Tesla’s earnings results, how they will affect Tesla share price, and how to trade Tesla’s earnings.

    Source: Bloomberg   Shares Tesla, Inc. Price Profit Tesla Volatility  
    When is Tesla’s results date?
    Tesla announced that it will release its latest figures for quarter two (Q2) of 2021 on Monday, 26 July after market closes.
    Tesla share price: forecasts from Q2 results
    Based on Q2 deliveries, whose figures were released earlier this month, it was a record that was roughly within Wall Street estimates on a total of 201,250 vehicles delivered and production at 206,421. From a profit point of view, the issue is that 99% of those deliveries were made up of Model 3 and Y, less than 1% being the high-margin Model S and X models. And while newer versions of the latter two are expected to positively factor into future earnings, for the time being, traders and investors will have to settle with low-margin models to formulate the Q2 earnings story.
    There have been price increases over the past quarter in an attempt to offset supply chain pressures that included raw materials price increases and chip shortages. And while higher prices and deliveries should translate into higher revenue, overcoming tested profit margins will also be noted. Difficulties in China not just on the regulatory front but also from domestic competition, deliveries rebounding in May and June from April’s slump.
    There’s also exposure to crypto volatility, which last time around might have been a positive on bitcoin prices surging, but could be in for a bit more pain this time around given prices are considerably lower (roughly half its record $64,900 highs). Reliance on regulatory credits to take earnings into the green will wane as competitors aggressively tackle the electric vehicle (EV) market.
    But aside from the updates on its latest products, model updates, and production plans, in the end it’s about the numbers, and expectations are for an earnings per share (EPS) of $0.96, and where revenue will nearly double last year’s $6.04 billion at $11.21 billion given the delivery and price increases. Targets continue to vary significantly when it comes to Tesla share prices, the average though close to where its current market price is hovering near. Recommendations are also across the board, but average out to a hold with slight upside bias (source: finance.yahoo.com).
    Trading Tesla’s Q2 results: technical overview and trading strategies
    Technicals are of far less relevance when it comes to fundamental events that can take prices past key levels with ease, and the technical overview thus far has been consolidatory as prices oscillate staying above its main weekly long-term moving averages but where other key technical indicators are primarily neutral, an average directional movement index (ADX) no longer showing a propensity to trend in that time frame.
    On a normal day, those looking to trade conforming to the technical overview might consider reversals (initiating a buy strategy after the fist support is broken only if prices manage to recover to that level, or initiating a sell position after the first resistance level is breached first and only if prices come back down to that level), given fading a volatile move will result in getting stopped out with ease. Those expecting a breakout and for the current technical overview to fail can consider breakout strategies when prices reach those levels to capitalise on a potential move to a new zone.
     

    Source: IG  
    Tesla daily chart with retail sentiment

    Source: IG charts  
    IG client sentiment* and short interest for Tesla shares
    When it comes to client sentiment, it’s been a consistent heavy buy bias, the latest at 74% and below extreme buy 87% bias back in June as longs got enticed into closing out on the lift off of its previous short-term support level at around $540.
    As for short interest, it’s considerably less than what it was at around the same time last year, when the figure was above 60 million. As of 30 June it was nearly half that amount, at 34,093,281, and is 4.4% of the shares floated, and dropping from 39,363,717 two weeks before that (source: shortsqueeze.com).
     

    Source: IG  
    *The percentage of IG client accounts with positions in this market that are currently long or short. Calculated to the nearest 1%, as of today morning 8am for the outer circle. Inner circle is from the previous trading day.

    Chris Beauchamp | Chief Market Analyst, London
    16 July 2021
  15. ArvinIG
    Dear IG Community,

    Please be aware that due to Memorial Day (US) and the Platinum Jubilee (UK) bank holidays our trading hours will change.

    All times are in UK time.

    Monday 30th May
     Brent Crude and Gas Oil futures close early at 6.30pm.
    US index futures close early at 6pm. We’ll make an out-of-hours price on Wall Street, US 500, US Russell 2000, FANG Index and US Tech 100 from 6pm until the futures reopen at 11pm.  US equities and soft commodities are closed.  US interest rates close early at 6pm.  US energies and metals close early at 7.30pm.  The VIX closes early at 4.30pm.  Thursday 2nd June
     UK equities, UK index futures, interest rate and commodity markets (except Brent Crude & Gas Oil) are closed. We’ll make an out-of-hours price on the FTSE 100.  Friday 3rd June
    UK equities, UK index futures, interest rate and commodity markets (except Brent Crude & Gas Oil) are closed. We’ll make an out-of-hours price on the FTSE 100. Hong Kong markets will be closed. Out of hours pricing will be available on the Hong Kong HS50, Hong Kong Tech and China H-Shares indices. Please let us know if you have any question

    All the best - Arvin
  16. ArvinIG
    With one vote standing between Labor and an outright majority, Pilbara Minerals shares could soon be striking record highs.

    Source: Bloomberg   Indices Shares Spodumene Pilbara Australia Pilbara Minerals   Pilbara Minerals (ASX: PLS) shares shot up from 15 cents during the covid-19 pandemic-induced crash to a record $3.72 by mid-January earlier this year.
    Now down to $2.81, the ASX 200 lithium stock could see another price breakthrough soon.
    Pilbara Minerals share price: political impetus
    Dating to 3.6 billion years ago, the Pilbara region in Western Australia is home to the fossilised remains of Earth’s oldest lifeforms. And with a population of just 61,000 people, the vast space is one of the most sparsely populated on the planet.
    Named for the lithium-abundant region, Pilbara Minerals believes its 100%-owned Pilgangoora mine makes it the ‘leading ASX-listed pure-play lithium company,’ of the ‘the world’s largest, independent hard-rock lithium operation.’
    With an $8.36 billion market cap, these aren’t just marketing words. And the ASX lithium stock could soon see this figure rising.
    On 1 May, then to be Prime Minister Anthony Albanese tweeted ‘Labor will invest $1 billion in developing value-added products from Australian resources. We'll take resources like lithium and nickel, and instead of shipping them to another country to make batteries, we’ll have what we need to make them right here.’
    The Labor party campaigned to strengthen domestic renewable energy, promising to invest a matched $39.3 million in EV charging stations, exempting most EVs from import tariffs and fringe benefits tax, and doubling the Driving the Nation Fund.
    It’s specifically committed $1 billion of the $15 billion National Reconstruction Fund to develop value-added products from Australian resources.
    And with the party now just one seat from an outright majority, it’s also likely to see significant support from the Teal Independents, the Greens, and the public to push through rapid green legislation.

    Source: Bloomberg Mining good news
    But this isn’t the only good news for Pilbara Minerals’ share price.
    On 17 May, the ASX lithium stock announced it had been awarded a $20 million grant from the Australian government alongside partner Calix under the Modern Manufacturing Initiative. The funds are earmarked ‘for the progression of a demonstration scale chemicals facility at the Pilgangoora Project - with the aim of producing lithium salts for global distribution via an innovative midstream “value added” refining process.’
    The project aims is to ‘deliver a superior “value-added” lithium raw material that outperforms across the key metrics of product cost, quality, carbon energy reduction and waste reduction/handling.’
    And specifically mentioning ‘increased downstream “value-add” realisation within the Australian economy,’ Pilbara is almost exactly echoing the words of the country’s new PM. Pilbara and Calix aim to create the joint venture in Q3, with a final investment decision likely by early 2023. And with a new man in charge, further funding could be on the agenda.
    It also released a corporate presentation highlighting both the ongoing lithium price spike alongside its updated strategy to expand production at Pilgangoora to between 560,000 and 580,000 tonnes of spodumene concentrate starting next quarter.
    Then on 24 May, Pilbara announced the results of its fifth spodumene concentrate digital auction held via its Battery Metal Exchange (BMX).
    Its 5,000dmt cargo of 5.5% grade lithia received ‘strong interest’ from a ‘broad range of buyers,’ and Pilbara accepted the highest bid of USD$5,955/dmt. And as standard contract pricing is conducted on a 6% grade basis, PLS is being paid the equivalent of US6,586/dmt.
    For perspective, this is another record selling price for Pilbara Minerals. After setting up the BMX exchange to provide a clear price for battery grade-lithium concentrate, its first auction in July last year saw it sell a 10,000dmt cargo of identical 5.5% spodumene for US$1250/dmt.
    This means its spodumene has gained a 376% premium in less than a year, as the Chinese bidders that process 80% of the world’s battery-grade lithium desperately scour the globe for new sources.
    RBC Capital Markets analyst Kaan Peker notes that at this latest auction ‘the price equivalent is 35% above the current spot price in China and indicated that Chinese converters are willing to pay more for spodumene given the current lithium market conditions…prices in China/Seaborne can still move higher.’
    With Albanese politically contracted to utilise Australian lithium to make more EV batteries domestically, the number of bidders for auction number six could be about to go up.
    And this can only be good news for Pilbara Minerals shareholders.
    Take your position on over 13,000 local and international shares via CFDs or share trading – all at your fingertips on our award-winning platform.* Learn more about share CFDs or shares trading with us, or open an account to get started today.
    Charles Archer | Financial Writer, London
    27 May 2022
  17. ArvinIG

    Ted Baker shares dip on profit-taking

    By ArvinIG,


    Analyst article
    The fashion retailer unveiled full-year results and a Q1 trading update

    Source: Bloomberg   Shares Brand Ted Baker Retail Company United States   Trading is turning around at Ted Baker PLC after a difficult few years due to Covid. The fashion retailer says it is benefiting from the general return to office-based working, travel and events such as weddings.

    Revenues at the company, which recently put itself up for sale, rose 20% during the full-year to £428 million (from £355.3 million in 2021). Losses before tax narrowed to £44.1 million from £107.7 million last year.

    Shares rose half a percent on the day of the results but fell 3% on Friday to 135.8p, suggesting investors may have decided to take some profits after there was little news about the bid situation for the company.
    Ted Baker brand ‘remains robust’
    “We continue to make good progress against our transformation plan, helping us deliver strong sales momentum through the year as we focus on driving Ted Baker’s growth as a global lifestyle brand,” chief executive officer Rachel Osborne told investors.

    “That momentum has continued into the new year, supported by a steady return to the office and social events. While we remain mindful of what is a challenging macro environment, we are well positioned for growth.”

    Osborne says customer’s response to their 2022 collection and new digital platform, which recently launched, has been positive and that its “strong brand, capital light strategy and well-established distribution channels” give the company confidence for its future. The company says the brand remains in “robust health.”

    Trading in the UK has remained strong, while it is improving in the US and Germany. Store sales increased by 62% in the US to £64.4 million, boosted by the easing of Covid restrictions and greater demand for formal wear. UK and European sales also rose by 11% to £205 million.

    Gross margins improved by 105 basis points for the full-year, with gross margins on full price sales up 810 basis points for the period. The company had net cash of £3 million at the end of the year and bank facilities in place of £80 million.
    Ted Baker receives flurry of offers
    Ted Baker officially put the company up for sale following two offers from US-based Sycamore Group. However, the private equity firm recently pulled out of the bidding. Management says the company has received a flurry of further offers from other parties. It’s thought that Authentic Brands, the company behind Reebok, is considering making a bid.

    “The most urgent task for the new owner of Ted Baker is to revitalise the brand’s fading image,” said Alex Smith, global sector lead at Third Bridge. Our experts say that there are very few brands that have the sheer personality of Ted Baker and the value of a refresh could be huge.

    “[However] hybrid working gets more entrenched every day, this leaves a big question mark over the future demand for formal workwear. Ted Baker is wisely moving away from formal occasion wear towards everyday.”

    Smith thinks the US offers a “massive opportunity for future growth” because of its size but warns that the likes of Amazon and eBay are also moving into the premium fashion sector.

    Like other retailers, the company will also be facing rising input costs and the cost of living crisis’ squeeze on customer’s pockets.

    Ted Baker shares are down 22% this year but have benefited of late from takeover talk. Investors may wish to hang on until a recommended offer ensues, but it may also be wise to take some profits in the short term.

    Piper Terrett | Financial writer, London
    Saturday 28 May 2022
  18. ArvinIG
    USD/JPY remains range-bound after a move lower lacked follow through; JPY direction might be hostage to broader moves in the US dollar and yen weakening has paused.

    Source: Bloomberg   Forex Shares Japanese yen USD/JPY United States dollar Market sentiment   USD/JPY
    USD/JPY spent last week straddling the late April low of 127.03. When it initially moved below that level, the price exhibited very little follow through, making a low of 126.36. This could indicate a lack of conviction to press lower and support might be at that low. Further down, the break points at 125.10 and 125.28 may provide the next support zone. The March low of 121.32 could also be a support level to watch.
    The consequent sideways price action appears to confirm that the range trading environment remains intact for now. Prior to this set-up, USD/JPY had been in an ascending trend channel. The 19th April was the day that JPY was at its historical lowest ebb against the CNY. When that CNH/JPY peak was made, China started to devalue CNY via USD/CNY and consequently, JPY stopped weakening more broadly.
    The period since 19th April has seen the 5-, 10-, and 21-day simple moving averages (SMA) move above the price and turn from positive to negative gradients. This rolling over of the short-term SMAs potentially indicates near-term bearish momentum. Offsetting this, the medium- and long-term SMAs, represented by the 55- and 200-day SMAs, remain below the price with positive gradients, illustrating possible bullish cues over a somewhat longer time horizon.
    This clash of momentum signals further supports the possibility that a range-trading setup may persist. If the price breaks above the short term SMAs or below the 55-day SMA, momentum could gather in that direction. On the topside, the recent highs of 131.26 and 131.35 could offer an area of resistance. A break above those 20-year peaks may see a possible test of the resistance zone at the January and February 2002 highs of 135.01 – 135.16.

    Source: TradingView
    This information has been prepared by DailyFX, the partner site of IG offering leading forex news and analysis. 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.

    Daniel McCarthy | Strategist
    30 May 2022
  19. ArvinIG
    Snap’s share price hit a record of $83 last September. But it’s now down by 82% to $15 a share, below its $17 IPO launch price.

    Source: Bloomberg   Shares Snap Inc. Macroeconomics Spiegel (US retailer) Chief executive officer Inflation   Snap (NYSE: SNAP) shares have fallen by a third over the past week as CEO Evan Spiegel sent a note to staff, part of which was filed with the SEC, that presented a downgraded vision for short-term future growth.
    But with 332 million daily active users, Snap’s share price could now be a buying opportunity.
    Snap share price: reality check
    In its filing, the CEO told employees and investors that ‘the macroeconomic environment has deteriorated further and faster than anticipated…we believe it is likely that we will report revenue and adjusted Ebitda below the low end of our Q2 2022 guidance range.’ Worryingly, its Q2 revenue forecast was for 20% to 25% year-over-year growth and was already below analysts’ estimates.
    Speigel blamed ‘rising inflation and interest rates, supply chain shortages and labor disruptions, platform policy changes, the impact of the war in Ukraine, and more.’
    In April’s Q1 results, the CEO had previously sounded an enthusiastic note, arguing they ‘reflect the underlying momentum in our business through a challenging operating environment, as we grew our community 18% year-over-year to reach 332 million, and grew our revenue 38% year-over-year to reach $1.06 billion for the quarter.’
    While revenue was up 38% year-over-year to a little over $1 billion, Q1 already had a flashing red warning sign; Snap’s net loss had increased by 25% to $360 million from $287 million.
    There are two key takeaways from the CEO’s words. The first is that rather than fully committing to investing in further rapid growth, Snap is battening down the hatches. The second is the speed of the directional change, just one month after Q1 results.

    Source: Bloomberg Where next for Snap shares?
    The depressive effect of Snap’s update wasn’t confined solely to its own share price, with Meta, Alphabet, Twitter, Pinterest and more losing a reported $200 billion in combined market value on a single update from the relatively minor player.
    Given Snap’s now $25 billion market cap, it’s concerning how influential the announcement was. And many high growth tech companies, including Meta and Twitter, had already warned that growth would slow in this quarter.
    Dan Suzuki, Deputy CIO at Richard Bernstein Advisors, told Bloomberg that social media companies ‘are having to bring these unattainable, unrealistic investors’ expectations back down to Earth…underlying growth is slowing as these companies mature and it gets more competitive.’
    Atlantic Equities analysts concurred, saying that ‘coming just a month after issuing guidance this would seem to highlight the current rapid pace of change in underlying economic conditions…Snap’s warning is clearly a negative for all of the ad-supported peers.’
    Like its competitors, Snap benefitted from a user surge during the pandemic as consumers worldwide were forced into government-mandated lockdowns. But people are now returning to offices, schools, and normal society, while wider macro factors are depressing its stock. However, as Piper Sandler analysts encouraged, it does mean ‘this is more macro and industry-driven versus SNAP specific.’
    However, Stifel analysts noted that SNAP ‘is slightly more DR (direct response) than brand currently’ and that these types of campaigns ‘are likely starting to get hit a bit more from inflationary pressures.’
    Spiegel is now in a tough spot. On one hand, he’s conducting a spending review and has urged managers to slow hiring, saying ‘our most meaningful gains over the coming months will come as a result of improved productivity from our existing team members.’
    However, having increased headcount by 1,800 in 2021, and by a further 900 so far this year, the CEO still intends to increase growth. Despite the pessimistic tone, the company still expects to hire an additional 500 staff by end 2022. Arguably, employee pressure to perform is about to increase.
    But it’s important to contextualise this update. Snap’s revenue exploded from $59 million in 2015 to $4.1 billion in 2021. And while growth will almost certainly slow down in the near term as advertisers reduce spend, the wider macro factors hitting Snap’s share price will eventually subside. Spiegel’s warning is about external factors, not an internal problem with Snap’s business model.
    And every contraction in advertising spend ever has been followed by a period of sustained growth. At $15 apiece, Snap shares could be a buying opportunity for investors with both the fortitude and the patience to hold long-term.
    Trade over 16,000 international shares from zero commission with us, the UK’s No.1 trading provider.* Learn more about trading shares with us, or open an account to get started today.
    *Based on revenue excluding FX (published financial statements, June 2020).

    Charles Archer | Financial Writer, London
    31 May 2022
  20. ArvinIG

    Short-selling explained

    By ArvinIG,


    Educational
    Short-selling goes against the traditional mantra of buying low and selling high. But it can be a useful tool, helping traders to find opportunity even in falling markets. Find out what short-selling means and how it works.
      Shares Forex Short Asset Stock Hedge   What is short-selling?
    Short-selling, or a short sale, is a trading strategy that traders use to take advantage of markets that are falling in price. When you short-sell, you are selling a borrowed asset in the hope that its price will go down, and you can buy it back later for a profit.
    Short-selling is also known as ‘shorting’ or ‘going short’. Most short-selling takes place on shares, but you can short-sell many other financial markets, including forex and indices.
    How does short-selling work?
    Short-selling works by the trader borrowing the underlying asset from a trading broker and then immediately selling it at the current market price. You don’t actually own the asset, so you will probably have to pay a lender’s fee. When you close your trade, you buy the asset back at its new price and return it to your lender. If the market does fall, you can profit from the decline, but if it rises, you’ll have to buy back the shares at a higher price and accept the loss.
    Traditional short-selling comes with a few limitations. For instance, because you don’t own the assets that you are going to trade, you’ll need someone to lend them to you. This means that you could encounter issues like an unborrowable stock – the term for a share that no one is willing to lend you.
    Using derivative products, such as CFDs, is an alternative way to execute the trade, since these products do not require the exchange of an underlying asset.
    With CFD trading, you are agreeing to exchange the difference in price of your chosen asset from when the position is opened to when it is closed. When you short-sell a CFD, you open a position to ‘sell’ the asset. For example, if Apple shares are trading at $150 a share, and you short-sell 100, you could close your position when the price reaches $145 a share and make a profit of $500 [($150 - $145) x 100].
    Example of short-selling
    Suppose bitcoin is currently trading at $3500, but you think the price will go down. So, you decide to open a short position on 10 bitcoin. A week later, the price reaches $3400 and you close your position. This means you have made $1000 in profit.
    This is calculated by subtracting the new asset price from the opening position price, and then multiplying by the number of bitcoin traded [($3500 - $3400) x 10].
    If the price rises, you will run a loss. For example, if bitcoin rises to $3550, you will lose $500.
    Why short-sell?
    The main benefit of short-selling is that it increases the number of trading opportunities. The two most popular reasons for short-selling are speculation and hedging.
    Short-selling gives traders a whole new dimension of market movements to speculate on – as traders can make money even if the underlying asset drops in price. Hedging is another way to use short-selling. With hedging, traders can protect against losses to a long position. For example, if you’re going long on the S&P 500, a downward move could negatively impact you. Therefore, you also open a short position to lessen the impact.
    But short-selling also has its disadvantages. There is higher exposure to losses if the asset’s price doesn’t behave as you expect. If an asset’s price increases, your losses could potentially be unlimited. And if this happens, a short squeeze can occur, which means short sellers all try to cover their positions at once – pushing the price of the stock up even further and amplifying losses. This makes it important to have a risk management strategy in place.
    Manage your trading risk and improve your trading skills with IG Academy’s risk management course
    Short-selling tips
    In order to get the most out of the market via short-selling, it’s important that you do extensive planning and have a solid strategy. We have put together a few tips to get you started.
    Do a complete fundamental analysis on the market before you decide to go short Be mindful of your position size – the larger it is, the more risk is involved. However, if the position is very small, you might not make a visible profit Set up trading alerts that will notify you when your market hits a certain level and then lets you decide what to do next Place trailing stops that will follow your position if it earns a profit and close if it reverses Place guaranteed stops to close your position once it rises to a certain point. This puts a limit to your downside and you’ll only have to pay a small charge if your stop is triggered Short-selling summed up
    We have summarised a few key points to remember on short-selling below.
    You can go short on a market of your choice, via CFD trading or by borrowing stock from a broker If the underlying market price dips, you could make a profit It’s important to have the appropriate risk management tools in place to avoid big losses In a nutshell, you can use short-selling to speculate on falling market prices – giving you the opportunity to profit from bear markets as well as bull runs.
    Anzél Killian | Financial writer, Johannesburg
  21. ArvinIG
    Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 6th June 2022. These are projected dividends and likely to change. IG cannot be held responsible for any changes made.
    Dividends highlighted in red include a special dividend, therefore some or all of the amount will not be adjusted. Amount in brackets is the expected adjustment after special dividends excluded (where shown on major indices). Dividend adjustments due to be posted on a bank holiday will usually be posted on the previous working day. 
    If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect  your positions, please take a look at the video.

    NB: All dividend adjustments are forecasts and therefore speculative.
    A dividend adjustment is a cash neutral adjustment on your account.
     
     
    Special Dividends
            Index
    Bloomberg Code
    Effective Date
    Summary
    Dividend Amount
    SPX
    EOG US
    14/06/2022
    Special Div
    1.8
     
    How do dividend adjustments work?  
    This 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.
  22. ArvinIG
    The Hang Seng Tech index, which tracks the 30 largest tech-themed companies listed in Hong Kong, has delivered a drawdown of as much as 68% since its February’s peak last year.

    Source: Bloomberg   Indices Shares China Risk Severe acute respiratory syndrome coronavirus 2 Hang Seng Index   Brief overview
    The Hong Kong Tech index, which tracks the 30 largest tech-themed companies listed in Hong Kong, has delivered a drawdown of as much as 68% since its February’s peak last year. Although there were some attempts to stabilise in recent weeks with further policy support from authorities and easing Covid-19 restrictions, previous rounds of dip-buying were met with relatively short-lived relief rallies. This bodes the key question of when we can actually see an eventual bottom.
    From a valuation standpoint, the price-to-book ratio for the index currently stands at 0.96, which may seem to be at an attractive level on a longer-term timeframe, trailing way below the Nasdaq 100 index valuation of 6.7. That said, to provide a longer-term confidence boost for the sector, several uncertainties may be on watch.
    Some risks to watch
    Covid-19 risks
    While there has been some relief following China’s upcoming shift towards normalcy, its zero-Covid-19 stance remains in place, which points towards on-and-off economic restriction measures in the event of any virus outbreaks. Its low elderly vaccination rate and lopsided distribution of healthcare resources suggests that its strict position may not see a shift anytime soon. One may have to watch for a prolonged period of low virus cases, which may revive market confidence in the authorities to keep virus spreads under control and potentially put Covid-19 risks on the backseat. Additionally, we may have to see markets gradually adjusting their expectations around intermittent virus outbreaks, with any resilience in market performance to rising virus cases potentially a positive sign.
    Regulatory risks
    Just as dip-buyers carry some belief that regulatory reforms from authorities may be nearing its end, there have always been overnight surprises thrown in their way. While the hot-and-cool tone around the regulatory landscape continues to play out, one may have to watch for signs of a shift in tone from the authorities to potentially display some form of compromise. This will remain a black box, with the latest hurdle revolving around the potential delisting of Chinese tech firms from US stock exchanges. Previous talks have not seemed to lead to any concrete results, reinforcing the fact that it is a tricky issue to resolve.
    Global risk sentiments
    Global risk sentiments remain largely fragile in light of further tightening from central banks and the impending trade-off for economic growth. While China’s policies are deviating towards the accommodative end, any global risk-off mood may have a knock-on impact on performance in the region as well. With policy support and economic reopening, a stronger recovery in economic indicators over the coming months will be on watch ahead to gauge the impact of easing policy success and pent-up demand. That said, the huge drawdown for the Chinese tech sector since February last year has brought its valuation to near record low level, which may aid to limit the extent of losses from the global scale. The 20-day correlation between the Hang Seng Tech index and the Nasdaq 100 index has been negative since mid-May this year, and any divergence in performance ahead may be a positive sign of breaking away its influence from external factors.
    What can we expect in the near term
    The KraneShares CSI China Internet ETF (KWEB) offers exposure to Chinese software and information technology, with its top few holdings comprising of Tencent Holdings (10.6%), Alibaba Group Holding (9.0%), Meituan (7.8%), JD.com (7.4%), Baidu Inc (6.9%) et cetera. From a technical perspective, equity bulls may be seeking to defend a key support line at the $26.00 level, which marked its bottom back in 2013 and 2015. While a previous symmetrical triangle pattern may denote some market indecision, a recent break out of the triangle this week may seem to suggest that buyers are seeking to regain greater control. That said, should the $26.00 fail to hold, it may point to the strong bearish pressure in place, opening the doors for further downside.
     

    Source: TradingView  
    On the monthly chart, a hammer candlestick seems to be in place, coming after three consecutive months of negative performance. That may potentially increase the chances of a near-term rebound, with one to watch for any confirmation close in the coming month.
     

    Source: TradingView  
    Technical analysis – Hong Kong Tech index
    While the higher highs and higher lows for the Hong Kong Tech index in recent weeks suggests an attempt for a near-term upward trend, a key resistance at the 4,500 level may need to be overcome in order to provide further upside. This is where a downward trendline since November last year stands in place with a horizontal resistance level, which weighed on the index on two previous occasions since April. In the event of a retracement, the 4,067 level may seem to be on watch for any formation of a higher low, where the lower trendline of an ascending channel pattern may serve as support.
     

    Source: IG charts   Yeap Jun Rong | Market Strategist, Singapore
    02 June 2022
  23. ArvinIG
    Nike shares are struggling to find momentum in all-sessions trading after finishing the session lower on Monday after fourth quarter earnings were released.

      Shares Nike, Inc. Revenue Severe acute respiratory syndrome coronavirus 2 Technical analysis Inflation   Nike Q4 earnings
    We've seen earnings out from NIKE Inc (All Sessions) last night, and despite posting better than expected numbers, the share was still down in extended hours after the release as the group has forecasted first quarter (Q1) revenue below estimates.
    Earnings came in at $0.19 per share on revenues of $12.23 billion. Analysts had expected earnings per share (EPS) of $0.81 and revenue of $12.07 billion.
    Nike: technical analysis
    Let's bring up the chart now to see how Nike is trading.
    Now, remember, this is an all-session share on the IG platform, which means you can trade it from 9 a.m. UK time prior to the US open later on this afternoon.
    And as you can see, the reaction yesterday selling off after the announcement there, coming down to end the session down about 4.8% on the day. So far today, we have opened pretty much unchanged, not much move, seeing a little bit of momentum to the upside, trying to recover some of that move, especially on those better-than-expected earnings.
    But if we're looking at the messaging around this, we saw chief financial officer, Matthew Friend, say that Nike is taking a cautious approach to greater China given the uncertainty around additional Covid disruptions and expect first quarter revenue to be flat to slightly up, below estimates of a 5.1% increase.
    So that's the outline there from the messaging from those earnings. As we know, markets have been focusing a lot lately on forward guidance, what's going to come, especially now that we've seen inflation and costs gearing up. A lot of focus now on what are they going to deliver in the upcoming few months.
    We've seen the message, still expecting to see a little bit of a gain there for Nike. But below expectations that we've seen so far, the share remains within this descending channel, you can see.
    But if we zoom out a little bit, just to get the greater picture here, you can see we're still very much within that higher trend compared to where we started prior to the Covid rally. This is the beginning of 2020 here, the beginning of the summer. You can see we're now nearing that area, an area that's potentially more sustainable. Now, undone most of that Covid rally coming to rest around that area here. The 100 area at the moment, it's likely that we see a bit more price instability along this area and also finding a bit more support from where we've seen those previous lows, helping the price, trying to push higher and break this descending channel.
    Daniela Sabin Hathorn | Presenter and Analyst, London
    28 June 2022
  24. ArvinIG
    Risk-off sentiment has returned, and this has resulted in gains for the dollar at the expense of the euro, sterling and yen.
     

    Forex United States dollar Euro Japanese yen Pound sterling EUR/USD   EUR/USD
    EUR/USD returned to the 50-day simple moving average (SMA) this week ($1.0588), having rallied modestly from the lows of June, along with most risk assets. However, it looks like the hiatus from risk-off sentiment has come to an end once again, and a fresh move lower is in store.
    Further declines from here will bring $1.0384 and then $1.035 into view, as the pair heads back to retest recent lows seen over the past two months.
    A revival back above the 50-day SMA and then above $1.06 would be needed to suggest a resumption of the bounce, which then targets $1.0637 and higher.

    Source: ProRealTime GBP/USD struggles in early trading
    For GBP/USD as well it looks like a new drop is at hand, as the dollar strengthens again and the concerns about inflation and growth begin to build.
    The downtrend here looks to be in the process of reasserting itself, which suggests a resumption of the move back to $1.20 and lower. Below this there is not much evidence of support until the March 2020 lows of $1.15.
    Buyers will need to step in soon and push the price back above $1.2366 if they are to avoid this scenario, although a bounce back above $1.263 would be needed if it is to push on to create a higher high.

    Source: ProRealTime USD/JPY holds near highs
    USD/JPY has returned to the highs of last week, with the uptrend here just as firmly in place as the downtrends are for EUR/USD and GBP/USD.
    Now that the 2002 highs have been breached, the next step would be ¥146.75, the highs from 1998. Horizontal and trendline support come into view around ¥135.00, which may help support the price in the end of any drop in coming days.
    Below this the price would head towards the 50-day SMA at ¥131.00.

    Source: ProRealTime
      Chris Beauchamp | Chief Market Analyst, London
    29 June 2022
  25. ArvinIG
    Is the Walgreens share price likely to continue its slide as it halts the sale of Boots?

    Source: Bloomberg   Detrimental financial conditions made Walgreens pull the plug on its Boots sale
    Citing tougher financial conditions following the upheaval in credit markets, Walgreens Boots Alliance, the owner of the UK pharmacy and beauty group Boots, announced on Tuesday that it has abandoned its sale of Britain’s biggest chemist as recent bids didn’t meet its expectations.
    The US pharmacy company said on Tuesday that while there had been “significant interest” in the near 175-year-old business, it “has decided that it is in the best interests of shareholders to keep focusing on the further growth and profitability of the two businesses” and that an “unexpected and dramatic change” in the financial markets meant no offers had been received that reflected the potential value of Boots.
    Boots and its related No.7 beauty brand account for around five per cent of its parent’s $132 billion in annual sales. American pharmaceutical company, Walgreens has been looking to sell its UK Boots and No.7 beauty brand since the end of 2021, with a formal review of its options beginning in January of this year.
    However, Russia’s invasion of Ukraine, followed by rapidly rising interest rates in both the US and the UK, have made it very difficult for new issuers to operate within Europe’s high-yield credit market since financing any highly leveraged bids has become very costly.
    Walgreens had apparently been looking for as much as £10bn when it initially put Boots up for sale, as it sought to focus on its US businesses but after several failed bids, some apparently coming close to their valuation earlier this year, it finally pulled the plug on the Boots sale as the financial environment for bids worsened. “As a result of market instability severely impacting financing availability, no third party has been able to make an offer that adequately reflects the high potential value of Boots and No.7 Beauty Company”, the company stated.
    Walgreens insisted, however, that the abandoned sale of Boots should not reflect badly on the performance of the main UK chemist or the No.7 brand, saying they were continuing to grow and perform strongly.
    The US Boots owner also assured investors that it would continue to invest in the company, which has “exceeded expectations despite challenging conditions”.
    Despite halting the Boots sale at present, Walgreens’ chief executive, Rosalind Brewer, signalled that the company will “stay open to all opportunities to maximise shareholder value.”

    Source: ProRealTime Where to next for the Walgreens Boots Alliance share price?
    With the Walgreens share price down around 20% year-to-date and evolving in a clearly defined downtrend channel since the beginning of the year, and having this week topped out near its November 2021 low at $42.68 on the news that Boots is no longer up for sale, further downside looks to be in store.
    While the 55-day simple moving average (SMA) continues to cap the share price on a daily chart closing basis, as it has been doing since mid-February, the current June low at $39.15 remains in focus.
    If slid through, the late December 2020 low at $36.79 will be next in line, followed by the 78.6% Fibonacci retracement of the 2020-to-2021 advance at $36.15.

    Source: ProRealTime  
    Since one can clearly make out a series of lower highs and lower lows – the definition of a downtrend – the technical picture for Walgreens remains negative for now.
    For the downtrend to be broken and reversed at least two daily chart higher highs and higher lows would need to be seen and take the Walgreens share price to above not only this week’s high but also above the May and current June highs at $43.95 to $44.75. Only then could one envisage the 200-day SMA at $46.22 being back in sight.
    Below it the Walgreens stock is considered to be in bear market territory. Unless such a bullish reversal is seen in the days and weeks to come, further slides in the Walgreens share price are likely to ensue.
    Axel Rudolph | Market Analyst, London
    29 June 2022

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