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ArvinIG

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  1. ArvinIG
    NASDAQ 100, TREASURY YIELDS, INTEL EARNINGS, DOW JONES - TALKING POINTS
    Nasdaq 100 leads markets higher as Treasury yields decline following disappointing jobs data Intel reports Q2 Earnings, Revenues & EPS beat estimates, full year guidance raised Nasdaq 100 gearing up for another test of 15,000 following constructive price action, earnings US equity benchmarks continued their march higher on Thursday, led by the Nasdaq 100. Tech shares bounced on declines in US Treasury yields, which came following a disappointing and unexpected jump in unemployment claims. Market participants appear to be positioning into tech-related equities prior to next week, which will see some of the largest tech firms report their quarterly earnings. The Dow Jones posted its third consecutive day of gains, while the S&P 500 also notched slight gains.
    NASDAQ 100 1 HOUR CHART
    Chart provided by TradingView
    Intel reported earnings for Q2, with many following along for guidance as it relates to the global semiconductor shortage. Intel posted a strong quarter, beating revenue and earnings estimates. Q2 EPS came in at $1.28 per share, vs. estimates of $1.07. Revenues totaled $18.5 billion, against a consensus estimate of $17.8 billion. The world’s largest chipmaker also raised 2021 guidance, indicating that there may be light at the end of the tunnel for chipmakers and those reliant on their chips. Despite the strong quarter, shares of Intel dipped slightly in immediate after-hours trading.
    Broader markets have rebounded well this week following concerns over the Delta variant of COVID. The largest and most significant Nasdaq 100 constituents begin to report earnings next week, which may explain this week’s bullish price action. The question remains whether strong earnings will be enough to propel markets higher, with the tech-heavy index having already tested the 15,000 level. The S&P 500 slipped on Monday, tagging its 50-day moving average. The bounce following Monday’s decline sees the index retest an ascending trendline from November 2020, which may act as near-term resistance. “Under the surface” rotation may help prevent a broader sell-off, but future retracements back to the 50-day MA may persist given 2021’s price action.
    S&P 500 (SPX) DAILY CHART
    Chart provided by TradingView
    Brendan Fagan, Intern for DailyFX
    July 23 2021
    To contact Brendan, use the comments section below or @BrendanFaganFX on Twitter
     
    DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
    DISCLOSURES
  2. ArvinIG
    UK banks have seen their uptrends stall, with some caution regarding the outlook for the UK reflected in declines for Lloyds’ and Barclays’ share prices.

    Source: Bloomberg   Shares United Kingdom Price Barclays NatWest Market sentiment  
    What’s the outlook for UK banks?
    The UK economic recovery appears to have slowed, and this is worrying news for UK bank stocks. Barclays, NatWest and Lloyds are all highly dependent on the British economy and consumer/business spending. A slowdown here would be reflected in earnings and would pose a risk to the ongoing rally in bank stocks that has held up fairly well since October last year.
    UK banks have been bolstered by news that the Bank of England (BoE) has removed the rules around dividends and buybacks, but their shares have yet to respond in a positive fashion. Indeed, the sector has seen a pullback since its peak in early June, although the overall uptrend is still intact. Paradoxically, this may be a good thing as we prepare for first-half earnings from UK-listed banks, since it indicates that expectations around performance have been trimmed, allowing for the possibility that earnings will be well-received.
    UK banks share price – technical analysis
    Barclays Lloyds NatWest  
    Barclays share price
    The Barclays share price peaked for the time being in April around 190p, and since then a steady decline has taken place.
    However, the price appears to have found support around 160p, heading towards the 200-day simple moving average (SMA) at 156p and edging higher. The key now is a break above short-term trendline resistance from late June, which would suggest a rally above 170p, in order to establish a more bullish view.
     

    Source: ProRealTime Learn more on how to buy, sell and short Barclays shares
    Lloyds share price
    Lloyds’ overall uptrend remains intact despite some weakness since the beginning of June.
    The shares remain in a descending channel from the June high, with a move above 46.8p required to signal a breakout is in progress. This would also signal that the bounce from 43.3p has created a higher low, helping to revive the uptrend and negating the negative view created by the drop below the 100-day SMA (44.9p).
     

    Source: ProRealTime Learn more on how to buy, sell and short Lloyds shares
    NatWest share price
    For NatWest, the uptrend has paused, with gains stalling around 210p since the beginning of June.
    Dips into the 190p zone have found support, so another bounce towards 210p seems likely, with a more long-term bullish view requiring a push above (and daily close above) 210p.
     

    Source: ProRealTime Learn more on how to buy, sell and short NatWest shares

    Chris Beauchamp | Chief Market Analyst, London
    22 July 2021
  3. ArvinIG
    ‘Afterpay has always stood apart in the way it connects with customers around common core values of simplicity, transparency and trust.’
     

    Source: Bloomberg   Shares Money Bank Westpac Customer Morgan Stanley On Tuesday, 20 July, we received greater clarity on what Afterpay’s ‘Money by Afterpay’ product would look like and when it would likely be rolled out in Australia.
    Hype around this product, which was being rolled out with the help of Westpac’s white-label banking as a service product, has been building for some time.
    The sell-side has been particularly keen, with Morgan Stanley analysts – who have been consistently bullish on the name – in June making the rather bold claim that the service could help Afterpay double its Australian revenue.
    Quantifying that impact: by 2025, the investment bank thinks Afterpay Money could contribute as much as $589 million in revenue to the group.
    And as one final point, as we wrote previously, ‘Beyond its potential positive impact on the top-line, [Morgan Stanley thinks] Afterpay Money could also help the company boost engagement, reduce processing costs, and provide the company with more granular data on its customers.
    New insights
    These bold estimates were tempered by some concrete details courtesy of Afterpay on Tuesday, 20 July.
    Described as a money and lifestyle app – ‘Money by Afterpay’ – is aimed at helping individuals ‘trust themselves with money management’ and will initially give its users access to:
    A 1% per annum interest account A daily account with an attached, physical debt card, digital wallet, as well as the ability to send and receive payments It was noted that it is currently proposed that the Afterpay Money daily account would not charge its customers fees, which according to the company, would make it ideal for daily and commonplace transactions. To access the Afterpay Money App, users would need an existing Afterpay account.
    Management said they intended to rollout Afterpay Money in October after trailing the service amongst employees in July.
    Elsewhere, the company announced that it had been granted an Australian Financial Services License (AFLS), which would enable Afterpay to provide general financial advice to its customer-base.
    Management commentary
    According to co-CEOs, Anthony Eisen and Nick Molnar:
    'Afterpay has always stood apart in the way it connects with customers around common core values of simplicity, transparency and trust. Ultimately, with Money by Afterpay, our goal is to make managing your money simple, frictionless and stress-free.'
    ‘The money app, which will be rolled out through the company's banking as a service collaboration with Westpac, demonstrates that Afterpay ‘can quickly move at pace to get well ahead of customer expectations and bring both cutting-edge features and true 'surprise and delight' to the experience,’ the co-CEOs added.
    The Afterpay share price finished out Tuesday's session 1.64% higher at $106.62 per share. The stock continued to rise on Wednesday.
    Do you have a view on the markets? Whatever you think, you can use CFDs to trade stocks and other assets, through IG’s world-class trading platform.
    For example, to buy (long) or sell (short) a variety of local and international stocks using CFDs, follow these easy steps:
    Create an IG Trading Account or log in to your existing account Enter <Company name> in the search bar and select it Choose your position size Click on ‘buy’ or ‘sell’ in the deal ticket Confirm the trade For investors not looking to trade stocks, you can invest in shares directly through our share trading service.
    Shane Walton | Financial Writer, Australia
    21 July 2021
  4. ArvinIG
    CRUDE OIL PRICE OUTLOOK: Crude oil broke beneath a key trendline from March 2020 after reversing around the $67 mark Demand concerns and a strong USD could continue to eat away at crude prices in the coming days S&P 500, Dow Jones & NDX Technical Analysis: Down but Not Out (Yet) CRUDE OIL PRICE FORECAST: DELTA VARIANT CONCERNS SPARK SHARP REVERSAL - THE MACRO SETUP
    Crude oil suffered a sharp reversal to start the week as worries about the delta variant of the coronavirus sparked demand concerns. A resurgent US Dollar on the back of safe haven demand was likely another contributing factor to recent crude oil weakness and the fundamental forces have seen price crater beneath a key technical level. Derived from the pandemic lows in March, the trendline in question had helped guide crude oil higher for months and its recent failure could open the door to deeper losses for the commodity in the days ahead.
    CRUDE OIL PRICE CHART: DAILY TIME FRAME (JULY 2018 – JULY 2021)
    While the pace of declines has slowed, damage to the technical landscape has been dealt and the clear break beneath the March 2020 trendline constitutes a significant development for technicians. With arguably the most important trendline on the chart broken, subsequent support becomes less formidable and, should crude reverse higher, prior support will likely serve as resistance. Thus, the shift in the fundamental landscape has been followed by a similar downgrade in the technical landscape and further losses in the days ahead appear a real possibility.
    CRUDE OIL PRICE CHART: 1 - HOUR TIME FRAME (MAY 2021 – JULY 2021)
    With that in mind, secondary support becomes all the more crucial and areas that might offer assistance to bulls seem few and far between until the $62 to $60 area where the commodity’s May swing low resides alongside the 200-day simple and exponential moving averages. At the underside of the range is the psychologically-significant $60 mark that might serve as the next “line in the sand” standing in the way of another significant leg lower.
    In this week’s episode of The Macro Setup myself, Guy Adami and Dan Nathan discuss the case for a continuation lower in crude oil and the various levels to watch among other price action unfolding in the market. Click on the video attached to the top of this article to watch the full episode. In the meantime, follow @PeterHanksFX on Twitter for updates and analysis.
    Peter Hanks, Strategist for DailyFX.com
    Contact and follow Peter on Twitter @PeterHanksFX
    DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
    DISCLOSURES
  5. ArvinIG
    We spotlight ten of the largest and most important mining companies currently listed on the Australian Stock Exchange.

    Source: Bloomberg   Indices Shares Commodities Mining Gold Australia  
    Mining in Australia: what you need to know Top ASX mining stocks How to buy or invest in mining stocks 10 best ASX mining stocks to watch in 2021 Top ASX mining stocks: Where next? Mining in Australia: what you need to know
    Australia is known as the lucky country. Though this notion was conceived as an insult to Australian culture, there is no denying that Australians, when compared to the rest of the world, possess enviable wealth. A matter of luck indeed, this wealth has been sustained by way of virtue of the abundance of raw minerals that exist underneath the Australian soil.
    Reflecting that fact, the total value of mineral exports have risen steadily over time, in 2020 generating $270 billion in export revenue and making up 62% of the country's total export revenue. Of that, a significant portion was driven by iron ore exports, with iron ore exports hitting $116 billion in 2020. Coal, gold and copper make up the next most valuable exports – though as the table below highlights – combined they still are not as valuable as iron ore.
    Commodity
    Export Value (2020)
    Associated Stocks
    Iron ore
    $116 billion
    FMG, BHP, RIO,
    Coal
    $54.6 billion
    YAL, WHC, BHP
    Gold
    $27.1 billion
    NCM, NST, EVN
    Copper
    $10.4 billion
    OZL, SFR, AIS
    Ultimately, being right at the doorstep of China, Australia’s economy has been in prime position to exploit the Chinese economic miracle. As China has grown, and their need for industrial materials increased, Australia has played a significant role in building and fuelling the Chinese economic engine.
    While not the nation’s only trading partner, the list of minerals that Australia mines and exports is illustrative of the Chinese and Australian economic relationship. The most well-known of Australia’s mineral exports include iron ore, coal, lead and gold. In fact, Australia is the world’s largest exporter of iron ore and coal, and the world’s second-largest exporter of gold.
    Top ASX mining stocks
    BHP Group Fortescue Metals Group Rio Tinto Newcrest Mining South32 Northern Star Resources Mineral Resources Evolution Mining Oz Minerals IGO Company
    Ticker
    Related Commodity
    Share Price
    Market Capitalisation
    BHP Group
    BHP
    Iron ore, coal, copper, petroleum, nickel
    $50.50
    $152.8bn
    Fortescue Metals Group
    FMG
    Iron ore
    $25.42
    $79.3bn
    Rio Tinto
    RIO
    Iron ore, aluminium, gold, copper
    $127.83
    $48.4bn
    Newcrest Mining
    NCM
    Gold
    $26.37
    $21.9bn
    South32
    S32
    Coal, aluminium
    $2.87
    $13.8bn
    Northern Star Resources
    NST
    Gold
    $10.29
    $12.49bn
    Mineral Resources
    MIN
    Iron ore, lithium
    $59.27
    $11.32bn
    Evolution Mining
    EVN
    Gold
    $4.28
    $8.01bn
    Oz Minerals
    OZL
    Copper, gold
    $20.81
    $7.1bn
    IGO
    IGO
    Cobalt, nickel, copper,
    $8.38
    $6.48bn
    How to buy or invest in mining stocks
    You can invest in any of the ASX-listed mining stocks we have discussed today in two ways: either through share trading or derivatives trading. Share trading means that you take direct ownership of a company’s stock, meaning you could potentially profit if the share price increases in value or benefit from any dividends a company might decide to pay.
    By comparison to owning the shares outright, derivatives trading – such as CFD trading – allows you to speculate on the price movement of a company’s shares without actually taking ownership of them.
    Benefits of CFD trading
    CFD trading may prove attractive to some investors for a number of reasons, including the flexibility to trade stocks long and short, the ease of which it allows one to hedge, as well as the ability to gain larger exposure to an asset through leverage.
    Follow the simple steps below to start investing or trading mining stocks:
    Investing in mining shares
    Create or log in to your share dealing account and go to our trading platform Search for the stock you would like to invest in Select ‘buy’ in the deal ticket to open your investment position Choose the number of shares you want to buy Confirm your purchase and monitor your investment Trading mining shares
    Create or log in to your trading account and go to our trading platform Decide whether CFD trading is right for you Search for the stock you would like to trade Choose your position size Open your position and monitor your trade Learn about the costs associated with trading and investing with IG here.
    10 best ASX mining stocks to watch in 2021
    Below we look at the top 10 mining ASX-listed mining stocks that investors may want to watch in the year ahead, ranked from highest market capitalisation to lowest.
    1.BHP Group share price +17.28% YTD
    BHP Group is Australia’s largest diversified mining company, with operations spanning iron ore, coal, copper, petroleum, gas and nickel. BHP, like Fortescue and Rio Tinto, has been a significant benefactor of the recent runup in iron ore prices, with the company’s share price and profits rising firmly in the last year.
    The stock is dual-listed, with stock tradable on both the Australian Stock Exchange and the London Stock Exchange. Despite that dual-listing, the company remains headquartered in Melbourne, Australia.
    Trade BHP shares.
    2.Fortescue Metals Group share price +2.50% YTD
    Unlike BHP Group, Fortescue Metals Group is a pure play iron ore miner. Though the company was mired by operational uncertainty at the start of the last decade, it has since grown from strength to strength, currently standing as the seventh largest, public company in Australia.
    As noted at the start, much of that can be attributed to China’s insatiable demand for iron ore products, with FMG’s lower grade mix increasing exponentially in popularity in the last few years.
    Trade Fortescue shares.
    3.Rio Tinto share price +10.81% YTD
    Smaller than FMG and more closely resembling BHP, Rio Tinto has diverse mining operations, with a main focus on iron ore, aluminium, and copper. Despite being worth nearly $50 billion, the miner has faced a number of controversies and setbacks in recent times.
    In 2020 the company destroyed a key aboriginal cultural site – Juukan Gorge – with the CEO at the time, stepping down in response. More recently, the miner’s expansion attempts in Mongolia – through the Oyu Tolgoi mine, which commands one of the world’s largest copper and gold deposits – have hit regulatory setbacks and seen substantial CAPEX increases.
    Trade Rio Tinto shares.
     
    4.Newcrest Mining share price -2.37% YTD
    Departing from the iron ore theme, Newcrest Mining represents Australia’s largest gold producer, boasting a market capitalisation in excess of $20 billion. Despite being listed in Australia, Newcrest has operations spanning the globe, with mines in Canada, Australia, PNG, and Papua New Guinea.
    Centrally, the miner touts low-cost and long-life mines, and also has a number of promising brownfield and greenfield projects in the pipeline.
    Trade Newcrest shares.
    5.South32 share price +14.80% YTD
    Despite trading well-off its 2018 peak, not to mention the myriad of environmental concerns around coal, with iron ore exports remaining an important part of Australia’s economic health, South32 retains its prominence.
    While South32 may be best known for its coal operations, the miner’s operations span significantly beyond that, with production across aluminium, energy, metallurgical coal, manganese, nickel, silver, lead and zinc.
    Trade South32 shares.
    6.Northern Star Resources share price -22.57% YTD
    While not as large as Newcrest, Northern Star touts a number of tier-1, low sovereign risk operations across Australia (Jundee, South Kalgoorlie) and North America (Pojo). Speaking to the prolific nature of these operations, at the time of and to date, the miner had produced over 20 million ounces of gold.
    As the miner notes on its website:
    ‘Northern Star has a portfolio of low-cost, high-grade underground gold mines, and is firmly focused on maximising Shareholder returns.’
    Trade Northern Star shares.
    7.Mineral Resources share price +54.07% YTD
    The smallest of the iron ore miners on this list, Mineral Resources nonetheless boasts a portfolio of what is described as a set of world-class mine sites across the Pilbara and Goldfields regions within Australia.
    A distinctly forward-focused miner, as the company notes on its website:
    ‘We look for opportunities to grow our core business through producing commodities and innovation. In executing this model, we are undertaking a number of key growth projects that, combined, will deliver a 30 to 50-year pipeline of work to our mining services business.’
    Between June 2016 and June 2021, the Mineral Resources share price gained almost 484%, making it one of the best performing stocks on this list.
    Trade Mineral Resources shares.
    8.Evolution Mining share price -18.79% YTD
    Like Northern Star, Evolution Mining focuses on low risk, tier-1 jurisdictions – with operations across Canada and Australia. The miner’s key growth prospects include: Cowal underground, Red Lake transformation, Ernest Henry mine life extensions and Mungari discovery.
    From a strategic perspective, management said that Evolution was focused on driving growth by ‘improving the quality of our assets rather than increasing the number of assets in the portfolio.’
    The company maintains that mid-tier producers tend to deliver shareholders with the best returns. Between June 2016 and June 2021, the Evolution Mining share price has risen over 100%.
    Trade Evolution Mining shares.
    9.Oz Minerals share price +7.49% YTD
    Counting itself as Australia’s third largest copper producer, Oz Minerals is well positioned to benefit from the country’s significant presence in the global copper market. Investors appear optimistic about the miners prospects too: between June 2016 and June 2021, the stock has risen over 300%.
    With operations across Australia and assets in Brazil, Oz Minerals describes itself as a ‘Modern Mining Company that adapts to the ever changing environment, harnessing the innovative ideas of our people and collaborating to leverage the experience of those around us.’
    Trade Oz Minerals shares.
    10.IGO share price +24.70% YTD
    While mining companies are often accused of harming the environment, IGO, through its Nova nickel-copper-cobalt operation, is focused on developing mine sites to drive a clean energy future.
    To that end, beyond IGO’s existing Nova project, the miner has a number of exploration projects across Australia and Greenland in progress, including Kimberley, Paterson, Raptor, Lack Mackay, Fraser Range, and Frontier.
    ‘Exploration and discovery are core to the IGO DNA. It is a key platform for our growth-in-value strategy.’
    Investors have taken notice: between June 2016 and June 2021 the IGO share price has more than doubled.
    Trade IGO shares.
    Top ASX mining stocks: Where next?
    The mining industry has delivered to Australians extraordinary wealth and good fortune. The country’s post-colonial history has been punctuated by periods of mining booms, that has been used to develop the wealth of the nation.
    Since the rise of China as an economic powerhouse in the early 2000’s, contemporary Australians have been lucky enough to enjoy the riches generated from mining activities. Arguably, with the help of Chinese economic stimulus to spur the demand, it was the boom in commodity prices and mining activity that guided Australia through the worst of the Global Financial Crisis unscathed.
    Such a dependence on the export of raw materials is a risk to the Australian economy. It’s often said in Australia that the nation’s economic model is to dig stuff up and speculate the proceeds on residential housing. The country’s economic welfare is very much tied to global growth and can therefore be exposed to the whims of the economic cycle.
    However, with new innovations in the global economy, such as the growth in the electric car market, and developments in the renewable energy industry, Australian miners have moved to exploit the country’s vast deposits of minerals like lithium and uranium.
    Here are some other articles you might be interested in:
    Our deep dive into Australia’s lithium market: Top ASX Lithium Stocks to Watch in 2021 A closer look at gold and silver equities: Best gold and silver stock Shane Walton | Financial Writer, Australia
    20 July 2021
  6. ArvinIG
    Alphabet has made huge gains over the past year, and has found a new lease on life as money flows back into growth names. But will earnings meet already-high expectations?

    Source: Bloomberg   Revenue Price Dividend Valuation Dividend yield Moving average  
    When does Alphabet report earnings?
    Alphabet publishes its most recent earnings on 27 July.
    Alphabet earnings – what to expect
    Revenue is expected to rise 46% to $56 billion, while earnings per share (EPS) are forecast to rise 90% to $19.26.
    Advertising revenue continues to be the main slab of revenue for Apple, allowing it to fund loss-making expansion in areas such as cloud-computing, in which it competes with Amazon and Microsoft. For Alphabet, regulatory scrutiny continues to loom large, and will continue to be a major headache in coming quarters. But while fines may keep coming, they still amount to a drop in the ocean in terms of Alphabet’s revenue, and if not accompanied with real regulatory action, will represent only a passing trouble in the longer term, an excuse for regular selloffs but not a fundamental change in direction.
    Alphabet – valuation and broker ratings
    Like others in the growth/tech space, Alphabet continues to trade on a relatively high price-to-earnings (P/E) ratio, at 32.11, with no dividend yield at present. Brokers rate Alphabet highly, with 16 ‘strong buys’ and 28 ‘buys’, and just two ‘hold’ recommendations.
    Alphabet share price
    Alphabet seems unstoppable, having enjoyed a tremendous rally since September. Dips have been bought repeatedly, and since May a steady and quiet rally has provided very little chance for dip buyers to get involved. The price sits close to a new record high, having bounced in early May from the 50-day simple moving average (SMA), currently $2470. It is unlikely that this quiet rally will go on forever, so some caution might be warranted now, but with a clear eye on the steady trend.

    Source: ProRealTime Alphabet strides ahead
    Fundamentals and technicals continue to back Alphabet, with the ad business powering expansion elsewhere. Growth stocks are still in high demand, and the recent inflow back into tech stocks since May seems to suggest a return to growth stocks after the ‘value’ mania of the early part of 2021.
    Chris Beauchamp | Chief Market Analyst, London
    20 July 2021
  7. ArvinIG
    After a stellar year, Microsoft looks well-positioned for further growth and further gains in its shares.

    Source: Bloomberg   Shares Microsoft Stock Price Revenue Technical analysis  
    When is Microsoft earning’s date?
    Microsoft reports earnings on 27 July.
    Microsoft earnings – what to expect
    Microsoft is expected to report revenue of $44 billion, up 16%, while earnings per share (EPS) are expected to rise 30% to $1.90.
    Earnings season this time rolls around when Microsoft stock has already hit a new record high. The last set of quarterly results beat forecasts, accompanied by strong guidance for the remainder of its year, together with the largest overall growth in revenue since 2018. Growth prospects for its key cloud computing division look good, after a year in which its share of the SaaS market rose to 19.7%. Other parts of the group, including its Dynamics business, are also increasing market share and projecting a further shift towards a subscription-based model.
    Microsoft earnings – valuation and broker ratings
    At 38 times earnings and with a yield of 0.8%, Microsoft is hardly a bargain. But it is still a quality stock, with good growth in earnings expected, and solid momentum behind the share price.
    Unsurprisingly, Microsoft remains popular with brokers, with 37 ‘strong buy’ or ‘buy’ recommendations and just two ‘holds’, with no sell recommendations.
    Microsoft shares – technical analysis
    After the plunge of early 2020, Microsoft shares have recovered their poise, rallying steadily since April and showing no sign of slowing down. Repeated higher highs and higher lows have maintained the trend, and the price is still holding firmly above the 50-, 100- and 200-day moving averages (DMA). Trendline support from late September is some distance away, and after a 17% rally from the May low some consolidation and weakness might not be surprising.

    Source: ProRealTime A solid performer, with more to come
    This is a market that looks for quality in its winners, and Microsoft falls squarely into this category. Revenue growth is strong, the group has a solid plan for the quarters to come and the stock price continues to rally. So far, there seems little sign of a major shift in performance or sentiment.
    Chris Beauchamp | Chief Market Analyst, London 
    19 July 2021
  8. ArvinIG
    Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 19th July 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
    NIFTY
    HMCL IN
    22/07/2021
    Special Div
    10
    NIFTY
    TRCHM IN
    23/07/2021
    Special Div
    15
     
     
    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
    Earnings season can be a great time for a trader to get insight on their equity investments, as well as benefit from short-term volatility. But in order to maximize this trading opportunity, there are some key considerations to make before diving in. Read on for our three steps to follow when using earnings reports for trading.
    3 STEPS FOR USING EARNINGS REPORTS IN YOUR TRADING
    Preparing for earnings season involves choosing the companies to focus on and undertaking thorough research on the market before executing the trade.
    1) Choose Companies to Focus On
    The first step is to select the stocks to trade during the period. It is advisable for traders to go for a small number of companies, perhaps stocks with which they are familiar or trade already and find out the dates on which their earnings will be released. Large bellwether stocks are worth investigating, whether one is trading them or not, as their results can impact wider industries.
    When deciding on the stocks to go for, traders should understand that the relationship between an earnings result and subsequent price reaction is not always straightforward. Although better-than-expected earnings are generally bullish, they do not always translate to immediate price gains and the opposite holds true as well. An example of this can be seen below, with Walmart’s strong earnings in Q3 2018 failing to excite market participants.
    While encouraging, a quarterly report is more than last quarter’s results compared to expectations. Indeed, analysts are often much more concerned with the future expectations of the firm as price is a forward-looking metric, with future earnings being calculated in current prices.
    With that in mind, it becomes more reasonable when investors shy away from a stock with strong results for the past quarter, but an abysmal outlook for the future. A weaker outlook can seriously undercut a stock’s current valuation, regardless of past performance, a fact that is realized all too often during earnings season.
    Read our guide on How to Pick Stocks to choose the right companies for your stocks portfolio.
    2) Do Your Research
    Doing your stock research properly will involve looking at estimated earnings for your chosen stock and how they compare with analysts’ expectations. Also, traders should make sure they look at historical figures to get a feel for how the market has responded to releases in the past.
    While earnings season is typically thought of in terms what the results mean for a single stock, the season as a whole can also offer important takeaways.
    Information is offered on a company-specific basis, but common themes can ring true throughout. Headwinds like coronavirus, geopolitical tension, regulatory uncertainty or cyclicality can combine to form a wave of worries across a sector if cited often enough.
    Traders should investigate how such headwinds impact one sector or stock compared to others. For example, while a great many industries suffered during the coronavirus outbreak, March 2020 saw Greece-based tanker vessel operator Top Ships Inc (TOPS) experience a surge in product demand in areas such as cleaning supplies and paper products leading to increased shipping requirements. This in turn created higher trading volume and volatility.
    The effect of headwinds has also been witnessed, for example, with Brexit as companies delay capital expenditures until a post-Brexit order is established and the business environment is stable. Similarly, frequent mentions of trade-related headwinds have worked to undermine a variety of sectors from semiconductors to consumer staples in the US amid the US-China trade war, evidenced in the chart above by the surging mentions of ‘tariff’ in earnings reports for companies in the S&P 500.
    While these issues may not doom a stock to negative returns singlehandedly (as the TOPS example demonstrates), their appearance across an entire market can hint at their pervasiveness and the broader downward pressure they can exert on outlooks and valuations. Consequently, traders should monitor common complaints among corporations as it may help inform their broader macroeconomic strategy as anecdotal evidence builds to form a tangible threat to the broader index.

    3) Formulate a Trading Strategy – and Follow It
    Formulating a trading strategy for earnings season should include methodology for entry and exits, profit goals, time spent trading and a risk management plan. Trading earnings reports is difficult and risky. For some, trading around the event may not suit their risk profile. As such, any position taken should be adequately hedged and include a stop. That said, volatility can create unique circumstances, ripe with opportunity for a few specific strategies.
    When formulating a strategy for earnings season, traders should be aware that quarterly earnings are capable of seriously uprooting an ongoing price trend due to their relative infrequency and importance. This causes traders to position for severe price swings – evidenced by heightened implied volatility.
    Since it is exceedingly difficult for the average investor to correctly forecast how the company will perform – never mind the eventual impact on its share price - the risk-reward of entering a position immediately prior to a report can be skewed. If an investment vehicle of choice is impacted by implied volatility, the effect on the position can be particularly acute because implied volatility remains high until the results are released but typically collapses quickly afterward resulting in what is known as ‘IV Crush’.
    IV Crush is, as the name would suggest, when the implied volatility of a stock drops significantly, usually because the uncertainty has passed. The abrupt reversal in implied volatility is often accompanied by realized volatility, but not always.
    The discrepancy between implied and realized volatility allows for some unique trading strategies like straddles and strangles which seek to capitalize on absolute volatility of option contracts or short straddles and strangles which aim to capitalize on IV crush.
    Straddles
    Straddles involve buying both the call (buy) and the put (sell) option simultaneously with the same strike price (the fixed price at which the holder of an option can buy or sell), and the same expiration date. When applied to earnings, traders might straddle before the release and can profit from either a rise or fall in the stock’s price, as long as the stock’s price deviates from the strike price by an amount more than the total cost of the premium. This could potentially make a straddle a viable choice if traders think absolute volatility will be high but aren’t sure of the direction the move will take.
    The chart below shows Apple’s August 2019 earnings release prompt more trading and higher absolute volatility, as shown by the Volume and Average True Range indicators respectively, representing an example of a potentially favorable outcome for a straddle.
    A short straddle involves selling both the call and put options with the same strike price and expiration date. This move is often suited to ‘IV crush’ instances when the trader believes the price will not move too much over the course of the options contract.
    Strangles
    Strangles are similar to straddles, and can likewise have a long and short route. But while straddles have the same strike price for the call and put options, strangles have different strike prices. Strangles may potentially be a viable choice if the trader believes a stock has more chance of moving in one direction than the other following an earnings report, but still seeks protection if the position takes a contrary swing.

    TRADING EARNINGS SEASON: KEY TAKEAWAYS
    When trading earning season, there may well be a period of uncertainty and extreme volatility ahead. This makes picking the right stock, thorough background research and intelligent risk management key to navigating the period as planned – as well as implementing the right trading strategy. With these things in place, traders can maximize their chance of success and hopefully carry some key knowledge over to the next earning season.
    MORE ON EQUITIES AND STOCK TRADING
    Hungry for more information about equities? Make sure you check out our stock market section for comprehensive guidance on how to navigate this asset class, including:
    Beginner’s Guide to Stock Trading Types of Stocks How to Invest in Dividend Stocks DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
    DISCLOSURES
    Peter Hanks & Ben Lobel
    19 July 2021
  10. ArvinIG
    With world economies slowly emerging from the devastation wrought by the pandemic, we look at some of the industries that could play a key role in the recovery, and pick five stocks to keep an eye on.

    Source: Bloomberg   Indices Shares Commodities Investment Compass Group National Express  
    What's on this page?
    1. Recovery investment trends                                       2. What industries are shaping the economy reopening? 3. Top 5 recovery stocks: our analysts’ choice           4. How to trade or invest in recovery stocks Recovery investment trends
    According to our chief market analyst, Chris Beauchamp, a key phrase to keep in mind when thinking about recovery stocks is ‘a return to normality’. Overall, the argument is that as the dust settles from lockdowns, market uncertainty and immense supply chain disruptions, the pre-Covid patterns of demand may begin to re-establish themselves.
    Additionally, governmental stimulus packages in influential economies – like the US and those of Europe and Asia – will likely spur investor and consumer spending. This could result in an increased aggregate demand for goods and services.
    What industries are shaping the economy reopening?
    Although by no means an exhaustive list, the following industries could benefit from the much-anticipated lifting of restrictions:
    Mining: as aggregate demand begins to pick up, economies will consume higher amounts of input materials Banking: in combination with government stimulus packages, renewed consumer and investor confidence could lead to an increased demand for banking products and services Catering and support services: with people returning to work and countries reopening to public gatherings and events, the hospitality and support industry could once again see strong returns Alcoholic beverages: eased restrictions around alcohol sales and venues will likely result in a surge in demand – most especially in emerging markets Transport: while commuter travel should intensify as normal work routines begin to re-emerge, travel for the purposes of tourism may also see a period of growth as people are once again allowed to travel freely within national boundaries
    Source: IG Charts Top 5 recovery stocks: our analysts’ choice
    We asked our market analysts for their top picks for economic recovery stocks. In keeping with the industries that are set to contribute to a return to normality, the following are candidates for consideration:
    BHP Group Barclays Compass Group AB InBev National Express Group You can trade all of the above recovery stocks with us. To get started, open an account and search for your chosen company on our world-class platform.
    BHP Group
    BHP is one of the world’s largest mining firms. It’s a dual-listed company, meaning that while conducting business as a single operation and having identical boards, the Australian BHP Group Limited and the British BHP Group PLC are listed separately – and owned by different shareholder bodies.
    BHP Group PLC has a primary listing on the LSE, while BHP Group Limited has a primary listing on the Australian Securities Exchange (ASX). The group specialises in major commodities, including iron ore, metallurgical coal and copper. It also has interests in oil, gas and energy coal.
    The mining powerhouse faced several challenges in the early stages of the pandemic – notably the decline in demand owing to worldwide lockdowns and supply constraints resulting from interruptions to operations. Despite these challenges, however, BHP earned roughly $8.3 billion in profits over the 2019/2020 fiscal year.
    In addition to several positive performance indicators – for example a one-year return of 31.85%1 – the company’s dividends have also increased substantially: the September 2020 final dividend payment of 42.11p rose to an interim dividend of 72.99p in March 2021.2
    What do our analysts think?
    Beauchamp notes that with economies kicking into full-scale recovery mode, demand for basic resources is set to gain momentum, especially in resource-hungry and industrialised countries.
    Start trading BHP Group shares
    Barclays
    While headquartered in London, Barclays is a multinational bank operating two divisions: Barclays UK and Barclays International. The bank is regarded as one of the world’s most powerful transnational corporates, and has come to play an integral role in the functioning of the global financial system.
    The bank listed on the LSE in 1953 and, with a market cap of just under £28.5 billion, is a constituent of the FTSE 100. Barclays UK consists of personal banking, business banking and Barclaycard consumer businesses, while Barclays International consists of a corporate and investment bank, and card, consumer and payment businesses.
    Owing to the pandemic-caused decline in global economic activity, Barclays stock fell from a share price approaching the mid-180p range in early 2020, to just above the 80p mark in late March 2021. With a one-year return of 51% at the time of writing, and a share price that has recovered to pre-pandemic levels, Barclays seems to have weathered the storm.1 But, more good news could be in store.
    What do our analysts think?
    Beauchamp suggests that banks – like Barclays – with high levels of international exposure to US, European and Asian markets, are in a good position to capitalise from government stimulus packages.
    Start trading Barclays shares
    Compass Group
    A multinational food, hospitality and support services provider headquartered in the UK, the Compass Group operates in 45 countries. It’s the largest contract food service company in the world, servicing five key sectors: business and industry; health and senior care; education; sports and leisure; and defence.
    The group was admitted to the LSE in February 2001, is a constituent of the FTSE 100, and has been listed as a Fortune 500 company. As could be expected however, with offices, factories, schools, universities, sports grounds and public spaces being closed during lockdown – and only recently reopening once again in the UK – the Compass Group has been severely impacted by the Covid-19 pandemic.
    Reports indicate that in the wake of the outbreak, profits declined by approximately 78%, and the group had to lay off 7000 workers. However, the Compass Group still enjoys a large market cap of £26.8 billion, and its one-year return of 35.56% suggests that it’s recuperating.1
    Group chief executive, Dominic Blakemore, has noted that as of May 2021 already, Compass Group has seen an increase in its first time outsourcing rate, and a 20% rise in the acquisition of new accounts when compared to a pre-pandemic benchmark.
    What do our analysts think?
    Beauchamp points out that catering and support service providers now face the opportunities presented by a reopening economy – including the catering needs of a large population eager to return to normal day-to-day living.
    Start trading Compass Group shares
    AB InBev
    Anheuser-Busch InBev SA/NV (known as AB InBev) is one of the world's leading producers of beers. It has 630 beer brands, and enjoys a strong market presence in over 150 countries.
    Considered one of the largest fast-moving consumer goods (FMCG) companies globally, AB InBev resulted from a merger between the US-based Anheuser-Busch and InBev – itself a merger between the Belgian Interbrew and the Brazilian AmBev.
    The group focuses on two core sectors:
    The production of beers, including: Budweiser, Corona, Stella Artois, Beck's, Leffe, Hoegaarden, Castle, Castle Lite, Bud Light, Skol, Brahma, Quilmes, Michelob, Harbin, and Sedrin The production, bottling and sales of alcohol-free drinks, including: soft drinks, malt beverages, bottled waters and ice teas Importantly, it’s net sales are distributed around the world, with a large portion concentrated on North, Central and South America (about 72% combined). The company has a primary listing on the Euronext Brussels, and secondary listings on the Johannesburg Stock Exchange (JSE), the New York Stock Exchange (NYSE) and the Mexico City Stock Exchange (Mexbol).
    Amid the mass restrictions on pubs, restaurants and retail alcohol sales worldwide, AB InBev’s share price dropped from highs of around €75 in December 2019 to lows of under €30 in March 2020. As of July 2021, this has recovered to the €60 range – leaving room for further improvement as market demand in emerging markets picks up.
    What do our analysts think?
    Eased restrictions around alcohol sales and venues will likely result in a surge in demand – most especially in emerging markets.
    Start trading AB InBev shares
    National Express Group
    National Express operates bus, coach, train and tram services across the UK, Ireland, Germany, Spain, Portugal, the US, Canada, Morocco and Bahrain. It also provides long-distance coach services in Europe. The company was admitted to the LSE in April 1995, is a constituent of the FTSE 250, and currently has a market cap of just over £1.6 billion.
    After seeing an 80% decline in passenger numbers in 2020 due to travel bans, the carrier suffered a £445 million loss for the year – down from a pre-tax profit of £187 million in 2019. It’s been reported that National Express was forced to temporarily lay off, or furlough, close on 40,000 employees across the business during the peak of the pandemic.
    CEO, José Ignacio, has said that the operator should emerge from the pandemic ‘learner, fitter and financially stronger’ owing to the steps taken to endure the impact of travel restrictions. At the time of writing, the National Express share price, although much recovered from April 2020 lows – and showing a one-year return of 57.7% – still has ground to gain on its 2019 levels.1
    In June 2021, the group announced the acquisition of Transportes Rober (Rober) in Spain for a headline consideration of €13 million.
    What do our analysts think?
    With the lifting of the lockdown restrictions in the UK, Beauchamp argues that the tourism industry within national boundaries could experience an uptick in demand. Importantly, the anticipation of increased demand could result in positive investor sentiment and an upward trending share price.
    Start trading National Express shares
    How to trade or invest in recovery stocks
    With us, you can either invest in recovery stocks, or trade them long or short.
    When investing, you’ll use one of our share dealing accounts to buy shares outright. You’ll also receive any dividends if the company grants them.
    When you trade stocks, you do so with derivatives such as CFDs. You won’t own the stock, but you can use leverage to open a position while putting up just a percentage of the capital.
    It’s important to bear in mind, however, that leverage will amplify both your profits and your losses, and that you could lose more than your deposit. You should never risk more than you can afford to lose, and always take steps to manage your risk.
    With CFDs, you won’t have to pay stamp duty and can offset any losses against profits for capital gains tax.3
    How to trade recovery stocks
    Create an account or Open MyIG Choose CFDs and search for your opportunity Select ‘buy’ to go long, or ‘sell’ to go short Set your position size and take steps to manage your risk Open and monitor your position How to invest in recovery stocks
    Create an account or Open MyIG Search for the recovery stock you’d like to invest in Select ‘buy’ in the deal ticket (you can only go long when investing) Choose the number of shares you want to buy Open and monitor your position Best recovery stocks summed up
    Investment trends for recovery stocks could centre on a ‘return to normality’ – ie, patterns of economic activity that resemble those found pre-Covid-19 Industries that stand to benefit from this normalisation include: mining, banking, catering and support services, alcoholic beverages, and transport Whereas thematic investing can yield positive results, sound investment always relies on thorough analysis, good research and the correct management of risk Stocks to consider from within each of the above industries include: BHP Group, Barclays, Compass Group, AB InBev and National Express With us, you can trade recovery stocks using CFDs, or you can invest in them by opening a share dealing account Footnotes:
    1 London Stock Exchange, 9 July 2021
    2 BHP dividends information, 9 July 2021
    3 Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.

    Timothy Joubert | Financial Writer, Johannesburg
    16 July 2021
  11. ArvinIG
    Traders with a strong understanding of technical indicators are usually better equipped to navigate the financial markets than those that lack this knowledge. While personal investing goals, risk appetite and trading style will help to determine a strategy and trading plan, knowing what technical indicators to use in your approach can help to determine possible entry and exit points.
    Hundreds of technical indicators exist, and clear signals can be identified using effective indicators as part of a strategy. This article will cover six of the most popular technical indicators for stock trading.
    BEST TECHNICAL INDICATORS FOR STOCK TRADING
    For traders looking for the most effective technical indicators, it is important to consider the objectives of the trading strategy as well as the current market condition. For individuals trading individual stocks, it is often beneficial to apply indicators to the stock index in which that share belongs to get a holistic view of the larger market as a whole.
    Below are six of the most popular technical indicators to use when analyzing stocks:
    INDICATOR NAME
    TYPE OF INDICATOR
    CHARACTERISTICS
    Client Sentiment
    Contrarian Indicator
    Shows client positioning of the market Indicates when markets are nearing extremes Leading indicator Useful in trending markets Relative Strength Index (RSI)
    Momentum Oscillator
    Plotted between 0 – 100 Indicates when the market is overbought or oversold Leading indicator Useful in trending markets Stochastic
    Momentum Oscillator
    Plotted between 0 – 100 Consists of two lines, %K and %D line Indicates when the market is overbought or oversold Leading indicator Useful in rangebound markets Simple Moving Average (SMA)
    Trend following indicator
    The SMA represents the average price of a security over a specified period of time Equal weighting is given to all points in the data set Used to confirm the direction of the current trend Lagging indicator Useful in trending markets Exponential Moving Average (EMA)
    Trend following indicator
    The EMA represents the average price of a security over a specified period of time with a greater emphasis on recent prices Higher weighting is given to recent points in the data set Lagging indicator Useful in trending markets Moving Average Convergence Divergence (MACD)
    Momentum oscillator
    The MACD measures both momentum and the trend Overbought and oversold signals occur above and below the zero-line Lagging indicator Useful in trending markets CLIENT SENTIMENT
    Client sentiment data is derived from a brokerage’s execution desk data, measuring live retail client trades to determine possible directional biases in the market. When sentiment is approaching extreme levels, stock traders may begin to see a reversal as more likely which is why it is seen as both a contrarian indicator as well as potentially having a leading component.
    Below is an example of the IG Client Sentiment Index, IG’s sentiment gauge derived from execution desk data, for the Dow Jones index (Ticker: Wall Street). Based on the data below, 64% of traders have short positions which means that majority of traders expect the price of Wall Street to drop. However, sentiment is seen to be bullish, meaning that based on this data the price of Wall Street may be expected to increase. Although it is not advisable to trade-off sentiment (or any individual indicator) alone, an individual who is trading a constituent of the DJIA could use this data as an informative tool before applying additional indicators.
    DailyFX provides client sentiment data which isderived from live IG retail client trades for forex, commodities, cryptocurrencies and major stock indices. Stock sentiment analysis is also available for individual shares on the IG platform where applicable or available.

    RELATIVE STRENGTH INDEX (RSI)
      The relative strength index (RSI) is a momentum oscillator that measures the magnitude of price movements to determine whether a market is overbought or oversold. A market is seen to be oversold when the RSI is below 30 and is overbought when the RSI is above 70. These are key levels could indicate a potential reversal, classifying the RSI as a leading indicator. The chart below shows the RSI being applied to the daily chart for Uber Technologies (Ticker: UBER). The RSI trades between 30 and 70 for some time before falling below the 30 level. Below the 30 level, the first signal is a false signal because although it looks like the trend is going to reverse to the upside, the price continues to fall. However, the second signal is present when the RSI is below 30 and turns towards the upside. However, the RSI only confirms the reversal by crossing above the 30 line the next day.
    STOCHASTIC
    The stochastic oscillator is another momentum indicator which is used to determine overbought and oversold conditions when trading stocks. Unlike the RSI which measures the speed of price movements, the stochastic measures current price in relation to its price range over a period of time.
    The %K line (the black line) is calculated by using the latest closing price relative to the lowest low and highest high over a specified period of time and the %D line represents the simple moving average of the %K (three period Simple Moving Average is the most common).With stochastics, a bullish crossover occurs when the %K line (the black line) crosses over and above the %D line (the red dotted line). Likewise, a bearish signal occurs when the %K line crosses under and below the %D line. The strongest signals will often occur when there is a bullish cross-coupled with a move above 20 from below and a bearish signal coupled with a move below 80.
    In the image below, the stochastic indicator is applied to the S&P 500 price chart (Ticker: US 500). As indicated on the chart, a bearish crossover occurs from above the 80 line, indicating that the trend may reverse to the downside. The reversal is then confirmed once the lines cross 80. Likewise, the bullish crossover occurs below 20 and the reversal is confirmed once the 20 line is crossed.
    SIMPLEMOVING AVERAGE (SMA)
    A simple moving average (SMA) is a lagging indicator which represents the average price of a security over a specified period of time. In a trending market, the moving average modulates short-term price fluctuations and allows stock traders to identify the trend in a simplistic way.
    As depicted in the chart below, in a rangebound market, it is also possible to use a moving average to identify support and resistance levels. By applying the 50 day MA to the Boeing price chart, it is clear that the 50-day SMA can also be seen as potential support even as Boeing is trading in a ranging environment.
    EXPONENTIAL MOVING AVERAGE (EMA)
    As with the SMA discussed above, the exponential moving average (EMA) is a lagging indicator which represents the average price of a security over a specified period of time. However, unlike the SMA which gives equal weighting to all data points in the series, the EMA gives more weight to recent prices, removing some of the lag found with a traditional SMA. This makes the EMA an optimal candidate for trend trading as it allows traders to get a holistic view of the market without missing out on opportunities with may be due to the lag of a simple moving average.
    MACD
    The MACD (moving average convergence/divergence) is a technical indicator that can be used to measure both momentum and the strength of the trend. The MACD displays a MACD line (blue), signal line (red) and a histogram (green) which shows the difference between the MACD line and the signal line.
    The MACD line is the difference between two exponential moving averages (the 12 and 26 period moving averages using common default settings), whilst the signal line is generally a 9-period exponentially average of the MACD line. These lines waver in and around the zero line, giving the MACD the characteristics of an oscillator with overbought and oversold signals occurring above and below the zero-line respectively.
    With reference to the chart below, featuring Apple, Inc. (Ticker: AAPL):
    A bullish signal is present when the MACD line crosses ABOVE the signal line from BELOW the zero line. A bearish signal is present when the MACD line crosses BELOW the signal line from ABOVE the zero line. TECHNICAL INDICATORS FAQ’S
    What is the difference between a leading and a lagging indicator?
    Although leading and lagging indicators are both derived from historic price data, a leading indicator is used to indicate expected price movements in the market while lagging indicators are used to provide entry and exit signals once the trend has been identified.
    Although similarities and differences exist between the two, both are equally important and it is often beneficial for traders to use both leading and lagging indicators simultaneously.
    FURTHER READING ON STOCK TRADING
    Learn how to apply stock market sentiment analysis Explore the differences between stock trading and investing Bookmark our guide to stock market trading hours DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
    DISCLOSURES

    Tammy Da Costa , Markets Writer
    16 July 2021
     
     
     
     
  12. ArvinIG
    Alibaba and Tencent’s rumoured decision to partner up could mean the levelling of the playing field for investors, according to an IG analyst.

    Source: Bloomberg   Shares Tencent Alibaba Group Big Tech China WeChat
        Alibaba Group Holding Limited (HK) share price jumped up 3.7% a day after it was reported that the company is seeking to accept Tencent’s WeChat Pay as a payment method on its e-commerce platforms Tencent Holdings Ltd share price also rallied as much as 2.8% IG analyst Yeap Jun Rong says this latest tie-up eases some regulatory concerns On the other hand, it also begs the question of whether these steps are enough to appease authorities On Tuesday, China’s antitrust regulator also approved Tencent’s proposed takeover of the country’s third largest search engine, Sogou Inc Interested to trade Alibaba and Tencent shares at just a fraction of the cost? Open a full or demo account with us today to get started. Alibaba, Tencent share price: why are they on the rise?
    Chinese technology titans Alibaba Group Holding Ltd and Tencent Holdings Ltd are reportedly considering introducing their services on each other's platforms.
    Both companies are seeking to remove restrictions that will allow Tencent's WeChat Pay to be accepted as a payment mode on Alibaba's online marketplaces - Taobao and Tmall, according to a Wall Street Journal report on Wednesday (14 July 2021).
    A day after the report, Tencent shares rallied as much as 2.8%, while Alibaba shares spiked up 3.7%.
    IG market strategist Yeap Jun Rong says that this potential tie-up implies that the landscape for China tech companies ‘may have shifted’.
    ‘Near-term, it may ease some concerns by showing that these big tech companies are taking steps to adhere to regulations, softening some regulatory risks from authorities,’ says Yeap.
    ‘On the other hand, there may be some uncertainty on whether authorities will be satisfied with just this move, or whether there may still be more to come. There will also be some uncertainty revolving around the impact to growth potential by opening up to competition.’
    Despite this air of ambiguity, Yeap is optimistic that investors do not have to avoid China’s big tech in the long run. He says that as more countries start gaining more control over big tech firms, the playing field may ultimately be levelled.
    However, in the short run, ‘investors may still be awaiting more clarity, considering that both Tencent and Alibaba are still largely in a downtrend, with a series of lower price highs and lower price lows since February’, he adds.
    Are the tides turning for China’s big tech firms?
    This latest move to collaborate comes amid an ongoing crackdown by the Chinese government on anti-competition practices among the country's top tech companies.
    In April, Alibaba was fined a record US$2.8 billion, while Tencent was one of 34 companies that was instructed to improve its problematic practices.
    Nevertheless, investors had other reasons to cheer this week.
    On Tuesday, China's anti-competition body - the State Administration for Market Regulation, approved Tencent's proposal to acquire the country's third largest search engine Sogou Inc in a private US$3.5 billion undertaking.
    Markets have been watching with bated breath on the outcome of the deal, as it would indicate where Beijing currently stands in its clampdown strategy.
    In fact, the Hang Seng Index rose 1.9% following the announcement, recording its biggest gain in three weeks.
    ‘Regulators are still considering each deal case by case and not rejecting all of them. The sentiment is not that negative now,’ Castor Pang, head of research at Core Pacific Yamaichi, told Bloomberg. ‘Any good news will trigger buying on dips in the sector.’
    What’s your call on Chinese big tech stocks?
    Go short and long with spread bets, CFDs and share dealing on 16,000+ shares with the UK’s No.1 platform.* Learn more about trading shares with us, or open an account to get started today.
    * Best trading platform as awarded at the ADVFN International Financial Awards and Professional Trader Awards 2019.

    Kelvin Ong | Financial writer, Singapore
    Thursday 15 July 2021
  13. ArvinIG
    FTSE 100
    Gains have stalled below 7140, with the FTSE 100 unable to make any real forward progress.
    A move above 7180 is needed to spark a bigger move to the upside, while sellers will need to drive the price below 7030 to suggest a deeper retracement is at hand.

    Source: ProRealTime DAX
    The index moved up to a new record high yesterday, and has edged back down slightly since. However, a longer-term move higher still continues to elude the index.
    Dips towards 15,500 have found buyers of late, with 15,300 as firm support during two recent steep drops.

    Source: ProRealTime S&P 500
    A new record high for the S&P 500 yesterday has been followed up by some short-term weakness, but the overall move higher is still firmly intact.
    Trendline support from the mid-June drop comes into play near 4340, and then below this 4290 is a possible area of support.

    Source: ProRealTime

    Chris Beauchamp | Chief Market Analyst, London 
    Wednesday 14 July 2021 
  14. ArvinIG
    The Affirm share price fell on Tuesday (US time) as rumours emerged that Apple was planning on entering the BNPL market.

    Source: Bloomberg   Shares Apple Inc. Apple Pay Bloomberg L.P. Credit Fee  
    It was a relatively uneventful day for Affirm Holdings – a leading US-based Buy Now Pay Later (BNPL) company – during the first couple of hours of trade on Tuesday.
    The stock was flat, if not somewhat up on its intraday low before news broke that Apple – the $2.43 trillion tech behemoth, would be crashing the BNPL party with its own installments product.
    Trade stocks US-listed stocks like Affirm long and short with IG today. Create an IG account or log in to your existing account to get started now.
    Affirm share price in focus
    At 2:01 PM on Tuesday, Bloomberg ran a story titled Apple, Goldman Plan ‘Buy Now, Pay Later’ Service to Rival Affirm.
    The stock crashed almost immediately: falling over 10% in about 30 minutes. As traders and investors skirmished to find a bottom, the market was digesting reports that tech giant apple would be entering the BNPL space itself.
    Affirm closed out the session at $58.21 per share, down 10.45% for the session and well off its 52-week high of $146.90 per share. At those price levels, Affirm has an implied market capitalisation of just over USD$15.43 billion.
    Citing inside sources, Bloomberg reported that Apple was developing a BNPL product – tentatively titled Apple Pay Later – which would allow consumers to make purchases and pay off such purchase across a number of instalments. Goldman Sachs would apparently act as ‘the lender’ for this installments product.
    Importantly, no date was given on the potential rollout of such a product and Goldman Sachs or Apple representatives did not provide a comment when queried by Bloomberg.
    Goldman stock finished out yesterday’s session lower, while Apple eked out a gain to close above $145 per share.
    Expanding on how the service would work and citing sources close to the matter, Bloomberg reported that Apple’s BNPL product would be accessible to customers via Apple Pay on Apple devices. More specifically, the Apple Pay Later product looks to have two distinct ‘spin-offs’ for customers to take advantage of, with ‘Apple Pay in 4’ focused on short-term repayment terms. while a ‘Apple Pay Monthly Instalments’ product would focus on longer repayment terms.
    ‘At least some of the Apple Pay Later plans will also exclude late fees and processing fees, only costing users interest for longer-term plans,’ Bloomberg wrote.
    This service is expected to be available for purchases made online and in physical stores, and will apparently not require credit checks.
    Apple: a quiet payments play
    While Apple itself doesn’t provide granular data on the performance of Apple Pay, in 2020 Bernstein analysts estimated that Apple Pay accounted for some 5% of global credit card transaction volumes.
    ‘There are indeed plenty of reasons to worry that Apple may attempt to disrupt the payments ecosystem,’ said Berstein analysts at the time. A statement, which in retrospect, appears highly prescient.
    These events in the US flowed into Australian markets on Wednesday, with a number of ASX-listed BNPL companies witnessing steep declines at the open.

    Shane Walton | Financial Writer, Australia
    14 July 2021 
  15. ArvinIG
    IG’s FTSE 100 pre-market estimates point to the benchmark opening slightly higher on Tuesday.

    Source: Bloomberg   Indices Shares CFD United Kingdom IG Group COVID-19 pandemic in the United Kingdom  
    FTSE 100 Futures were trading as high as 7,135 on Tuesday (13 July 2021) This is up from the previous day’s closing of 7,125 The Footsie ended higher on Monday, after the UK government confirmed that all remaining Covid-19 restrictions will be lifted from 19 July Airline stocks like IAG and easyJet, however, remained suppressed DailyFX analyst Justin McQueen says the index’s overall trend remains higher Interested to go long or short on the FTSE 100 index without having to put up the full cost? Explore your options by opening a full or demo account with us today. FTSE 100 Futures: What’s the latest?
    UK blue-chip barometer FTSE 100 index is slightly up in overnight trading, IG data indicates.
    IG's live FTSE 100 Futures price estimates showed the index trading at a median level of 7,129 as at 04:55 GMT+1 on Tuesday (13 July 2021). Earlier, the index had hit as high as 7,135.
    This represents a slight increase from the previous day’s gains, when the Footsie had closed 3.54 points higher at 7,125.42.
    Why did the FTSE 100 close higher on Monday?
    The FTSE 100 finished higher on Monday, after UK Prime Minister Boris Johnson confirmed that the UK will lift all remaining Covid-19 restrictions, including the wearing of masks and the need for social distancing, from 19 July 2021.
    ‘We think now is the right moment to proceed... But it is absolutely vital that we proceed now with caution and I cannot say this powerfully or emphatically enough - this pandemic is not over,’ Johnson said during a press conference.
    Early gains on Wall Street also helped to boost the Footsie in the latter half of the session. The S&P 500, Dow Jones Industrial Average and Nasdaq Composite indexes were up by 0.2%, 0.3% and 0.1% respectively as at the close of trading in London.
    Joshua Mahony, senior market analyst at IG, said: ‘A slow start to the week has seen European and US markets enjoy marginal gains in a bid to follow Friday’s impressive surge for stocks.’
    Despite the lockdown update, travel stocks remained under pressure throughout the session, with airlines suffering the largest losses. IAG concluded 4% lower, with easyJet not far behind on a 3.5% drop.
    ‘Airlines are likely to continue on a relatively bumpy path as the UK shows its willingness to allow Covid levels to surge as a result of the reopening efforts,’ said Mahony.
    What’s the FTSE outlook this week?
    While the FTSE continues to be in a consolidation phase and hold a 7000-7200 range, the overall trend remains higher, according to DailyFX analyst Justin McQueen.
    That’s because the recent easing of lockdown measures will likely be reflected in the latest UK inflation figures, he said, adding that risks are thus ‘tilted to the upside’.
    ‘Similarly, inflationary pressures will be observed in the upcoming employment report, although, as the BoE (Bank of England) have stressed, the labour market will come into greater scrutiny once employment support programs expire in September,’ McQueen further noted.
    ‘That said, direction in the FTSE 100 will stem from broader risk trends as opposed to domestic data.’
    How to trade FTSE 100 index
    You can take a position on the FTSE 100 for just a small initial deposit with spread bets or Contracts for Differences (CFDs).
    Spread bets are completely tax-free, while CFDs are free from stamp duty. CFDs also give you direct market access (DMA), providing increased transparency useful for more advanced traders.
    Open an account to start trading now.

     Kelvin Ong | Financial writer, Singapore 
    13 July 2021
  16. ArvinIG
    WHAT IS A FOREX TRADING STRATEGY?
    A forex trading strategy defines a system that a forex trader uses to determine when to buy or sell a currency pair. There are various forex strategies that traders can use including technical analysis or fundamental analysis. A good forex trading strategy allows for a trader to analyse the market and confidently execute trades with sound risk management techniques.
    FOREX STRATEGIES: A TOP-LEVEL OVERVIEW
    Forex strategies can be divided into a distinct organisational structure which can assist traders in locating the most applicable strategy. The diagram below illustrates how each strategy falls into the overall structure and the relationship between the forex strategies.

    FOREX TRADING STRATEGIES THAT WORK
    Forex trading requires putting together multiple factors to formulate a trading strategy that works for you. There are countless strategies that can be followed, however, understanding and being comfortable with the strategy is essential. Every trader has unique goals and resources, which must be taken into consideration when selecting the suitable strategy.
    There are three criteria traders can use to compare different strategies on their suitability:
    Time resource required Frequency of trading opportunities Typical distance to target To easily compare the forex strategies on the three criteria, we've laid them out in a bubble chart. On the vertical axis is ‘Risk-Reward Ratio’ with strategies at the top of the graph having higher reward for the risk taken on each trade. Position trading typically is the strategy with the highest risk reward ratio. On the horizontal axis is time investment that represents how much time is required to actively monitor the trades. The strategy that demands the most in terms of your time resource is scalp trading due to the high frequency of trades being placed on a regular basis.

    1. PRICE ACTION TRADING
    Price action trading involves the study of historical prices to formulate technical trading strategies. Price action can be used as a stand-alone technique or in conjunction with an indicator. Fundamentals are seldom used; however, it is not unheard of to incorporate economic events as a substantiating factor. There are several other strategies that fall within the price action bracket as outlined above.
    Length of trade:
    Price action trading can be utilised over varying time periods (long, medium and short-term). The ability to use multiple time frames for analysis makes price action trading valued by many traders.
    Entry/Exit points:
    There are many methods to determine support/resistance levels which are generally used as entry/exit points:
    Fibonacci retracement Using candle wicks Trend identification Indicators Oscillators Within price action, there is range, trend, day, scalping, swing and position trading. These strategies adhere to different forms of trading requirements which will be outlined in detail below. The examples show varying techniques to trade these strategies to show just how diverse trading can be, along with a variety of bespoke options for traders to choose from.
    2. RANGE TRADING STRATEGY
    Range trading includes identifying support and resistance points whereby traders will place trades around these key levels. This strategy works well in market without significant volatility and no discernible trend. Technical analysis is the primary tool used with this strategy.
    Length of trade:
    There is no set length per trade as range bound strategies can work for any time frame. Managing risk is an integral part of this method as breakouts can occur. Consequently, a range trader would like to close any current range bound positions.
    Entry/Exit points:
    Oscillators are most commonly used as timing tools. Relative Strength Index (RSI), Commodity Channel Index (CCI) and stochastics are a few of the more popular oscillators. Price action is sometimes used in conjunction with oscillators to further validate range bound signals or breakouts.
    Example 1: USD/JPY Range Trading

    USD/JPY has been exhibiting a prolonged range bound price level over the past few years. The chart above illustrates a clear support and resistance band which traders use as entry/exit points. The RSI oscillator demonstrates timing of entry/exit points as highlighted by the shaded blue and red boxes – blue: overbought and red: oversold.
    Range trading can result in fruitful risk-reward ratios however, this comes along with lengthy time investment per trade. Use the pros and cons below to align your goals as a trader and how much resources you have.
    Pros:
    Substantial number of trading opportunities Favourable risk-to reward ratio Cons:
    Requires lengthy periods of time investment Entails strong appreciation of technical analysis 3. TREND TRADING STRATEGY
    Trend trading is a simple forex strategy used by many traders of all experience levels. Trend trading attempts to yield positive returns by exploiting a markets directional momentum.
    Length of trade:
    Trend trading generally takes place over the medium to long-term time horizon as trends themselves fluctuate in length. As with price action, multiple time frame analysis can be adopted in trend trading.
    Entry/Exit points:
    Entry points are usually designated by an oscillator (RSI, CCI etc) and exit points are calculated based on a positive risk-reward ratio. Using stop level distances, traders can either equal that distance or exceed it to maintain a positive risk-reward ratio e.g. If the stop level was placed 50 pips away, the take profit level wold be set at 50 pips or more away from the entry point.
    Example 2: Identifying the Trend

    In the simple example above, EUR/USD exhibits an upward trend validated by higher highs and higher lows. The opposite would be true for a downward trend.
    EUR/USD Trading the Trend

    When you see a strong trend in the market, trade it in the direction of the trend. For example, the strong uptrend in EUR/USD above.
    Using the (CCI) as a tool to time entries, notice how each time CCI dipped below -100 (highlighted in blue), prices responded with a rally. Not all trades will work out this way, but because the trend is being followed, each dip caused more buyers to come into the market and push prices higher. In conclusion, identifying a strong trend is important for a fruitful trend trading strategy.
    Trend trading can be reasonably labour intensive with many variables to consider. The list of pros and cons may assist you in identifying if trend trading is for you.
    Pros:
    Substantial number of trading opportunities Favourable risk-to reward ratio Cons:
    Requires lengthy periods of time investment Entails strong appreciation of technical analysis 4. POSITION TRADING
    Position trading is a long-term strategy primarily focused on fundamental factors however, technical methods can be used such as Elliot Wave Theory. Smaller more minor market fluctuations are not considered in this strategy as they do not affect the broader market picture. This strategy can be employed on all markets from stocks to forex.
    Length of trade:
    As mentioned above, position trades have a long-term outlook (weeks, months or even years!) reserved for the more persevering trader. Understanding how economic factors affect markets or thorough technical predispositions, is essential in forecasting trade ideas.
    Entry/Exit points:
    Key levels on longer time frame charts (weekly/monthly) hold valuable information for position traders due to the comprehensive view of the market. Entry and exit points can be judged using technical analysis as per the other strategies.
    Example 3: Germany 30 (DAX) Position Trading

    The Germany 30 chart above depicts an approximate two year head and shoulders pattern, which aligns with a probable fall below the neckline (horizontal red line) subsequent to the right-hand shoulder. In this selected example, the downward fall of the Germany 30 played out as planned technically as well as fundamentally. Towards the end of 2018, Germany went through a technical recession along with the US/China trade war hurting the automotive industry. Brexit negotiations did not help matters as the possibility of the UK leaving the EU would most likely negatively impact the German economy as well. In this case, understanding technical patterns as well as having strong fundamental foundations allowed for combining technical and fundamental analysis to structure a strong trade idea.
    List of Pros and Cons based on your goals as a trader and how much resources you have.
    Pros:
    Requires minimal time investment Highly positive risk-to reward ratio Cons:
    Very few trading opportunities Entails strong appreciation of technical and fundamental analysis 5. DAY TRADING STRATEGY
    Day trading is a strategy designed to trade financial instruments within the same trading day. That is, all positions are closed before market close. This can be a single trade or multiple trades throughout the day.
    Length of trade:
    Trade times range from very short-term (matter of minutes) or short-term (hours), as long as the trade is opened and closed within the trading day.
    Entry/Exit points:
    Traders in the example below will look to enter positions at the when the price breaks through the 8 period EMA in the direction of the trend (blue circle) and exit using a 1:1 risk-reward ratio.
    Example 4: EUR/USD Day Trading

    The chart above shows a representative day trading setup using moving averages to identify the trend which is long in this case as the price is above the MA lines (red and black). Entry positions are highlighted in blue with stop levels placed at the previous price break. Take profit levels will equate to the stop distance in the direction of the trend.
    The pros and cons listed below should be considered before pursuing this strategy. Day trading involves much time and effort for little reward, as seen from the EUR/USD example above.
    Pros:
    Substantial number of trading opportunities Median risk-to reward ratio Cons:
    Requires lengthy periods of time investment Entails strong appreciation of technical analysis 6. FOREX SCALPING STRATEGY
    Scalping in forex is a common term used to describe the process of taking small profits on a frequent basis. This is achieved by opening and closing multiple positions throughout the day. This can be done manually or via an algorithm which uses predefined guidelines as to when/where to enter and exit positions. The most liquid forex pairs are preferred as spreads are generally tighter, making the short-term nature of the strategy fitting.
    Length of trade:
    Scalping entails short-term trades with minimal return, usually operating on smaller time frame charts (30 min – 1min).
    Entry/Exit points:
    Like most technical strategies, identifying the trend is step 1. Many scalpers use indicators such as the moving average to verify the trend. Using these key levels of the trend on longer time frames allows the trader to see the bigger picture. These levels will create support and resistance bands. Scalping within this band can then be attempted on smaller time frames using oscillators such as the RSI. Stops are placed a few pips away to avoid large movements against the trade. The MACD indicator is another useful tool that can be exercised by the trader to enter/exit trades.
    Example 5: EUR/USD Scalping Strategy

    The EUR/USD 10 minute above shows a typical example of a scalping strategy. The long-term trend is confirmed by the moving average (price above 200 MA). The smaller time frame is then used to target entry/exit points. Timing of entry points are featured by the red rectangle in the bias of the trader (long). Traders can also close long positions using the MACD when the MACD (blue line) crosses over the signal line (red line) highlighted by the blue rectangles.
    Traders use the same theory to set up their algorithms however, without the manual execution of the trader.
    With this practical scalp trading example above, use the list of pros and cons below to select an appropriate trading strategy that best suits you.
    Pros:
    Greatest number of trading opportunities from all forex strategies Cons:
    Requires lengthy periods of time investment Entails strong appreciation of technical analysis Lowest risk-to reward ratio 7. SWING TRADING
    Swing trading is a speculative strategy whereby traders look to take advantage of rang bound as well as trending markets. By picking ‘tops’ and ‘bottoms’, traders can enter long and short positions accordingly.
    Length of trade:
    Swing trades are considered medium-term as positions are generally held anywhere between a few hours to a few days. Longer-term trends are favoured as traders can capitalise on the trend at multiple points along the trend.
    Entry/Exit points:
    Much like the range bound strategy, oscillators and indicators can be used to select optimal entry/exit positions and times. The only difference being that swing trading applies to both trending and range bound markets.
    Example 6: GBP/USD Swing Trading Strategy

    A combination of the stochastic oscillator, ATR indicator and the moving average was used in the example above to illustrate a typical swing trading strategy. The upward trend was initially identified using the 50-day moving average (price above MA line). In the case of an uptrend, traders will look to enter long positions with the old adage of ‘buy low, sell high’.
    Stochastics are then used to identify entry points by looking for oversold signals highlighted by the blue rectangles on the stochastic and chart. Risk management is the final step whereby the ATR gives an indication of stop levels. The ATR figure is highlighted by the red circles. This figure represents the approximate number of pips away the stop level should be set. For example, if the ATR reads 41.8 (reflected in the last ATR reading) the trader would look to place the stop 41.8 pips away from entry. At DailyFX, we recommend trading with a positive risk-reward ratio at a minimum of 1:2. This would mean setting a take profit level (limit) at least 83.6 (41.8 x 2) pips away or further.
    After seeing an example of swing trading in action, consider the following list of pros and cons to determine if this strategy would suit your trading style.
    Pros:
    Substantial number of trading opportunities Median risk-to reward ratio Cons:
    Entails strong appreciation of technical analysis Still requires extensive time investment 8. CARRY TRADE STRATEGY
    Carry trades include borrowing one currency at lower rate, followed by investing in another currency at a higher yielding rate. This will ultimately result in a positive carry of the trade. This strategy is primarily used in the forex market.
    Length of trade:
    Carry trades are dependent on interest rate fluctuations between the associated currencies therefore, length of trade supports the medium to long-term (weeks, months and possibly years).
    Entry/Exit points:
    Strong trending markets work best for carry trades as the strategy involves a lengthier time horizon. Confirmation of the trend should be the first step prior to placing the trade (higher highs and higher lows and vice versa) – refer to Example 1 above. There are two aspects to a carry trade namely, exchange rate risk and interest rate risk. Accordingly, the best time to open the positions is at the start of a trend to capitalise fully on the exchange rate fluctuation. Regarding the interest rate component, this will remain the same regardless of the trend as the trader will still receive the interest rate differential if the first named currency has a higher interest rate against the second named currency e.g. AUD/JPY.
    Could carry trading work for you? Consider the following pros and cons and see if it is a forex strategy that suits your trading style.
    Pros:
    Little time investment needed Median risk-to reward ratio Cons:
    Entails strong appreciation of forex market Infrequent trading opportunities FOREX STRATEGIES: A SUMMARY
    This article outlines 8 types of forex strategies with practical trading examples. When considering a trading strategy to pursue, it can be useful to compare how much time investment is required behind the monitor, the risk-reward ratio and regularity of total trading opportunities. Each trading strategy will appeal to different traders depending on personal attributes. Matching trading personality with the appropriate strategy will ultimately allow traders to take the first step in the right direction.
    ENHANCE YOUR FOREX TRADING
    If you’re new to forex trading, download our Forex for Beginners Trading guide. Register for free to view our live trading webinars which cover various topics related to the Forex market like central bank movements, currency news, and technical chart patterns. Stay up to date with major news events and economic releases by viewing our economic calendar. Successful trading requires sound risk management and self-discipline. Find out how much capital you should risk on your open trades. We also recommend viewing our Traits of Successful Traders guide to discover the secrets of successful forex traders.
      Warren Venketas, Markets Writer
    13 July 2021

     
  17. ArvinIG

    Is Nvidia worth buying now?

    By ArvinIG,


    Market News
    The largest chip maker in the US saw its shares decline despite a trio of price target upgrades this week.

    Source: Bloomberg   Shares Nvidia United States Price Market trend Stock   Nvidia Corp (NASDAQ: NVDA) share price ended 2.3% lower on Thursday (08 July 2021) This trailed the S&P 500, which finished the day 0.86% lower The stock’s decline was also despite bullish price revisions newly issued by Truist, Oppenheimer and KeyBanc analysts Interested to trade NVDA shares? Open an account with us today to get started. Nvidia stock price: What’s the latest?
    Nvidia shares closed 2.3% lower on Thursday, despite new price target upgrades.
    Truist Securities analyst William Stein was much more bullish in his latest investment thesis, lifting his firm's price target on Nvidia to US$910 from US$768 previously, while maintaining a ‘buy’ rating on the shares.
    The analyst wrote that the data centre end market is likely to ‘continue to grow rapidly’, based on an analysis of sector trends.
    Stein also increased his 2022 earnings per share estimate for Nvidia to US$18.13 from US$17.08 in his latest note published earlier in the day, citing an analysis of the company’s software monetisation figures.
    Finally, he believes that the chip maker will remain a leader in parallel computing solutions, which will continue to drive its long-term structural growth.
    How do other analysts view NVDA shares?
    Oppenheimer’s equity research team also raised its price target on NVDA to a much more optimistic US$925 from US$700 before, alongside an unchanged ‘outperform’ call.
    Analyst Rick Schafer predicts that Nvidia, along with other semiconductor stocks, are likely to beat analyst estimates in the upcoming quarters, as sectoral demand remains strong across the board.
    KeyBanc analyst John Vinh was the most bullish of the lot, raising his firm’s price target to US$950 from US$775.
    He maintained an ‘overweight’ recommendation on the shares, citing a recent confirmation that gaming demand remains robust and has not been inflated by cryptocurrency mining trends.
    The stock has rallied 14.7% in the last one month. The latest analyst sentiments published by MarketBeat show a consensus rating of ‘buy’ and price target of US$720.32 on NVDA.
    The price target equates to a potential 9.5% downside from the counter’s last traded price of US$796.11.
    Nvidia’s ARM takeover deal gets boost
    Nvidia shares rallied 3.5% after three of the world’s largest chip makers publicly endorsed its proposed US$40 billion acquisition of UK-based semiconductor group Arm Ltd.
    They included Nvidia’s US rivals Broadcom Corp. and Marvell Technology, Inc., as well as Taiwan-based MediaTek Inc.
    That update saw Citi analyst Atif Malik raising the success probability of the ARM acquisition deal to 30% from 10% previously.
    The analyst said that the news is a ‘big step forward’ and that UK authorities will probably end up approving the deal because of Nvidia’s commitment to investing more into Arm.
    However, Malik believes that China is less likely to approve the deal and that the ‘path remains narrow’, as it could potentially hurt their access to Arm.
    How to trade Nvidia shares
    Take your position on US shares for just a small initial deposit with spread bets or CFDs.
    Spread bets are completely tax-free, while CFDs are free from stamp duty. You can also buy and take ownership of US shares commission-free with us.
    Whether you trade or invest, you’ll get access to pre-market and after-hours trading on 70 US stocks.
    Open an account to get started.

    Kelvin Ong | Financial writer, Singapore | Publication date: Friday 09 July 2021 21:36
  18. ArvinIG
    Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 12th July 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 BIN AU 16/07/2021 Special Div 0.117 MIB MS IM 19/07/2021 Special Div 0.3 (Estimated) RTY BCC US 14/07/2021 Special Div 2 RTY INSW US 14/07/2021 Special Div 1.12 RTY HPK US 14/07/2021 Special Div 0.075 RTY XBIT US 15/07/2021 Special Div 2.5 (Estimated) SPX EOG US 15/07/2021 Special Div 1  
     
     
    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.
  19. ArvinIG
    Many investors are likely wondering about which ASX shares to watch in 2021. We’ve broken down some of the key themes and gathered analyst insights – plus we explain how you can trade these stocks.
    Indices Shares Commodities Share ASX Stock
      ASX Shares to buy in 2021: our analyst’s picks                             How to buy the best ASX stocks
    Best ASX stocks in July 2021                                                             Best ASX dividend stocks in 2021
    Best ASX penny stocks in 2021                                                        Best ASX tech stocks in 2021
    Best ASX BNPL stocks in 2021                                                          Best ASX growth stocks in 2021
    Best ASX mining & lithium stocks                                                     Summary ASX shares in 2021: Key themes to watch
    Many of the key themes and trends of 2020 have persisted into the new year. These themes will likely continue to impact markets and individual companies, informing the ASX stocks that will be watched and potential heavily traded by investors in the year ahead.
    Here’s four key themes traders and investors should watch out for in 2021:

    For the links please Click here
    Australian shares to buy in 2021: our analyst’s picks
    We asked our market analysts for their top picks for 2021. Take a look at what they said below, from both a fundamental and technical (TA) perspective.
    Where this article refers to the best Australian shares, these are stocks picked by our analysts by virtue of market cap, dividends, share price performance and other factors. Note that we do not give personal advice and the information does not have regard to specific investment objectives, financial situation or needs.
    Remember, the best stocks for you will always be ones underpinned by your own thorough analysis of both the company and the market.
    Zip | Ticker: Z1P | Buy now pay later
    Zip is potentially well positioned to benefit from the structural shift away from credit cards, as well as growing consumer engagement with buy now pay later as an emerging payment category. Continued strength in US market could see Zip’s stock positively re-rate. Currently the stock trades at significant price-to-sales discount to Afterpay (~13x to ~44.5x), despite exhibiting strong growth momentum in the US BNPL market. Solid pattern of top-line (volume and revenue growth) growth. Group Q3 revenue +80% YoY, Q3 transaction volume up 110% YoY to $1.6 bn. US growth even better: Q3 Transaction volumes up 234% YoY and Q3 revenue up 188% YoY. Further geographic expansion (most recently EU and UAE) potentially opens up new growth opportunities.
    Source: IG Price looks to be consolidating at several key MAs, with the primary trend still skewed to the upside. Technical support sits at approximately -$7.40, which if broken would open up further downside to around $6.55, and threaten the prevailing trend The major resistance levels sit at approximately $8.30, $9.15 and $10.65 Coles | Ticker: COL | Retail
    Potentially well positioned to capitalise on shifting consumer trends, via Ocado and Witron automation projects. B2C e-comm growth at 57% in Q3 YoY, exhibiting only slight deceleration from the 1H FY21. Disciplined management team may be deemed a plus, with the Coles Smarter Selling program on track to hit $550 million in savings by the close of FY21. Recent share price weakness could represent a LT buying opportunity. Stock 8.6% off its 6-month highs. Potentially attractive for income-focused investors, with the Coles Board aiming to achieve a payout ratio 80-90%. Most recent interim dividend of 33 CPS, up 10% YoY. The stock’s yield hovers over 3.5%.
    Source: IG Price momentum has picked-up for the stock and has reverted to the 200-day MA, which has proven to be a level of price resistance recently. A break through the 200-day MA suggests the potential of another leg higher for the stock, with price support/resistance ~$17.70 the key level to watch. A failure to break through the 200-day MA, a drop in the daily RSI back below 50, and break of support at $16.70 would negate the burgeoning reversal in trend. Redbubble | Ticker: RBL | E-commerce
    Trades at a substantial earnings discount to US-listed Etsy (~23.9x to ~56x), despite a strong and growing North American presence. North America makes up 69% of RBL’s total gross transaction values and is growing at the fastest pace than any other region: +84% YoY growth in 1HFY21. Despite being valued on earnings, top-line growth is strong: up 105% on a constant currency basis to $354m in 1HFY21. Positive consumer engagement trends, with ~40% of revenue driven by repeat customers. Company benefits from a robust flywheel effect, reporting a solid increases in both artist sellers and customers. Selling artists on the platform hit 572k in 1H while customers hit 6.2m, up 76% YoY and 69% YoY, respectively. May be well placed to benefit the structural, global shift from bricks and mortar to e-commerce. RBL’s addressable market is pegged at US$300 billion.
    Source: IG Price has broken to the topside after period of consolidation, with technicals still indicating the stock is in a primary downtrend. The daily RSI has shown divergence from price, with the current reading above 50 suggesting momentum may be turning to the upside Price has reverted to the 50-day moving average, which is posing technical resistance for the stock – a break above that level may open a move toward and above $4.00 per share. How to buy the best ASX stocks
    With IG’s award winning trading platform, getting involved in the markets is a simple process.
    Research & Learn: Decide which company you’re interested in and/or learn more about trading with IG Academy. Choose to trade or invest: Whether you’re new to the markets or highly experienced, choosing to trade or invest with us is an important decision. Discover the differences between CFDs and Share Trading here. Open an account and place your first trade: Find out more about opening an account with us and placing your first trade here. You’ll pay from just $5 commissions on your Australian share trades, or 0.05% on all domestic shares if you've traded shares three or more times in the previous month.
    Learn more about our fees here (as well as the key benefits of being an active trader with us).
    Top 5 ASX stocks in July 2021
    Bapcor Qantas Life360 Woolworths Boral Click here to see the full list of the top 5 ASX stocks to watch in July now.
    Best ASX dividend stocks in 2021
    Australian investors love dividends. It makes sense given that a significant portion of the market is made up of banks and miners, which have historically paid high dividends. In saying that, the pandemic changed things to some degree, and some of the stocks which dividend investors previously relied upon, became well, less reliable.
    Even so, the ASX remains home to a number of ‘high yield’ dividend stocks. Below we take a deep dive into some of the highest yielding dividend stocks on the ASX:
    Fortescue Metals Group AGL Energy Stockland Click here to see the full list of the top 10 ASX dividend stocks now.
    Best ASX penny stocks in 2021
    Despite being dominated by banks and miners, the ASX also boasts a number of interesting and innovative penny stocks (companies with market capitalisations below $1 billion), that traders and investors may want to keep an eye on in 2021.
    Importantly, penny stocks are generally higher risk that blue-chip stocks: given that they often lack easy access capital, have negligible or no profits and have a short operational track record. Even so, the ‘top’ ASX-listed penny stocks, based on broker buy ratings, are:
    Australis Oil & Gas Limited AMA Group Doctor Care Anywhere Group Discover our full-list of top ASX penny stocks here.
    Best ASX tech stocks in 2021
    Australian tech stocks have risen to prominence in the last few years, with the likes of Wisetech, Altium, Afterpay, Appen and Xero charting a course towards global dominance in their respective fields. With that in mind, we look at the top AU tech stocks to watch in 2021, based on market capitalisation:
    Afterpay REA Group Xero Click here to read our full top 10 list now.
    Best ASX BNPL (Buy Now Pay Later) stocks in 2021
    An extension of the growth in tech stocks on the ASX, buy now pay later companies have flourished in Australia over the last few years, as the space attracts increasing levels of competition. Below we take a look at the top BNPL stocks listed in Australia, ranked in terms of market capitalisation:
    Afterpay Zip Sezzle Discover our full-list of top ASX BNPL stocks here.
    Best ASX growth stocks in 2021
    While often hard to categorise, one characteristic of a growth stock is strong top line growth – usually in the double and sometimes even, triple digits. With that in mind, the top ten ASX growth stocks to watch in 2021 include:
    Redbubble Temple & Webster Zip Get our complete growth stocks list here.
    Best ASX mining & lithium stocks
    Did you know that Australia actually has the largest deposits of hard rock lithium in the world? Even so, lithium stocks have proven volatile over the last few years, with lithium prices swing wildly between high and low points. Despite that volatility, here are the top companies with lithium exposure on the ASX, based on market capitalisation:
    Galaxy Resources Mineral Resources Pilbara Minerals Click here to see the full list of top lithium stocks now.
    Best ASX oil stocks in 2021
    How much longer can we rely on fossil fuels, such as oil? Is there a viable replacement for gold, which remains indispensable in a number of high profile technologies? Those long term questions, and more generalised uncertainty remain a key overhang in the commodities space. Oh, and the covid pandemic, which crippled oil supply and demand, didn’t help matter.
    All those issues aside, here are the top ASX oil stocks, based on market capitalisation:
    BHP Group Woodside Petroleum Santos Discover the rest of these tops stocks here, as part of our top oil stocks series.
    Best Australian shares to watch in 2021 summed up
    The themes and trends we have discussed today will likely continue to impact Australian and global markets in 2021 – both positively and negatively. The performance of the red-hot BNPL sector, Covid-recovery stocks, Australia’s big three miners and the dividend performance of the big banks – are all areas of the market worth watching in the coming year. That’s not all though, tracking the performance of AU dividend shares, ASX penny stocks, ASX tech stocks, as well as AU mining and lithium stocks, could yield some interesting results for active traders and investors. To trade these sectors and the companies within them, you’ll need a Live IG Account. (Don’t worry setting one up takes just a few short minutes.) Share trading lets you take direct ownership of the underlying shares, meaning you’ll profit from any upward movements in a stock’s share price. By comparison, trading lets you take a speculative position on a stock’s price movement, without owning the underlying shares. This gives you the flexibility to go long (a play on rising prices), or short (if you think prices will fall). The material above does not contain (and should not be construed as containing) personal financial or investment advice or other recommendations, or an offer of, or solicitation for, a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of the above information. Consequently any person acting on it does so entirely at his or her own risk. The information does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result.

    Shane Walton | Financial Writer, Australia
    06 July 2021
  20. ArvinIG
    A strong period for US corporate earnings is expected as companies reflect the continued recovery in the US economy, with further growth expected in coming quarters.

    Source: Bloomberg   Indices S&P 500 Index Inflation Price–earnings ratio Valuation United States
        When is US reporting season?
    US reporting season will kick off the week beginning 12 July and will extend to the middle of August.
    The market data that matters:
    EPS Growth Expected (YoY) Revenue Growth Expected (YoY) Current Price-to- Earnings Est. FY1 Price-to earnings Current Dividend Yield 59.80% 19.50% 30.64 22.75 1.34% Source: Bloomberg Intelligence
    What is the market expecting out of this earnings season?
    Sell side analysts are tipping a bumper earnings period for S&P 500 companies. As the economic recovery hits full stride, Bloomberg Intelligence currently estimates that earning per share (EPS) ought to grow by 59.8% this quarter on a year-over-year (YoY) basis.
    If realized, the increase will be the biggest jump in profit growth for a quarter since the end of 2010, as company earnings surge back from the depths of the Covid-19 recession one year ago. The sectoral outperformers in quarter two (Q2) are expected to reflect this cyclical rebound in US economic growth.
    Industrials are tipped to deliver 344.2% EPS growth, consumer discretionary expected to deliver 147.9% EPS growth, while materials stocks are forecast to deliver 117.6% EPS growth for the quarter.

    Source: Bloomberg Intelligence, IG The key questions this reporting period
    How much longer can the good times last?
    Analysts are estimating an extraordinary period of profit growth across the S&P500, as the base effects of last year’s earnings recession combined with a roaring US economy in the last quarter propel EPS growth to decade long highs. Given the likely strong results and lofty expectations, a central concern this earnings season will be how much longer companies expect the strong growth to last, as the economic cycle begins to mature.
    As it stands, the greatest rate of growth in profits for the cycle is expected to be realized in Q2, however analysts have still been upgrading the outlook for future profits, with the top of the profit cycle still seemingly to come.
    Has the market already priced-in the strong profit growth?
    In recent quarters, market prices have proven less receptive to earnings growth and earnings beats across the S&P500. High prices and rich valuations have meant that a lot of good news has already been baked into the mark before the commencement of earning season, as investors chase yield in risky assets, in a market environment flooded by central bank liquidity.
    The situation will be no different in Q2, with the bar set very high for companies to surprise to the upside, with market multiples, such as the Schiller price earnings (P/E) Ratio, suggesting that current valuations across the S&P500 are as stretched as at any point since the Dot.com crash.

    Source: multipl.com, IG How big of a risk is inflation to the fundamental outlook?
    Although implied expectations of future inflation in financial markets have recently diminished, there will remain a high degree of interest this earnings season in what corporates say about inflation pressures going forward. In particular, market participants will be keeping a close watch on what company management says about ongoing supply disruptions, along with persistent labour market shortages.
    There are some fears that these greater cost pressures could lead to some combination of higher inflation, or lower profitability for companies. At least in the last quarter, such pressures are tipped to have remained relatively contained, with Bloomberg Intelligence tipping robust 12.4 per cent margins for S&P500 companies in Q2.
    How could this earnings season impact the S&P500?
    As it always does, the performance of the S&P 500 this earnings season will come down to whether company profits exceed estimates, and by how much. With valuations rich, questions about future growth rife, and some level of fear about future Federal Reserve (Fed) policy, there’s some risk that prices are fully discounting the explosive profits set to be posted this quarter.
    Nevertheless, with the earnings upgrade cycle in full swing, and in any absolute sense, monetary policy remaining accommodative, the trend clearly remains skewed to the upside for the S&P500. Given the relatively rich premium over the 20-daily moving average (DMA), and a relative strength index (RSI) holding tentatively above 70, perhaps short-term risk-to-reward is skewed to the downside. But in this market, it’s likely any pullback for the S&P500 is an opportunity to buy the dip.

    Source: TradingView


    Written by Kyle Rodda | Market Analyst, Australia
    Wednesday 07 July 2021
  21. ArvinIG
    FX markets are susceptible to a range of factors which affect their volatility, and many traders look to tailor their strategies to capitalize on the most volatile currency pairs.
    Currency volatility, often measured by calculating the standard deviation or variance of currency price movements, gives traders an idea of how much a currency might move relative to its average over a given time period. Traders can also gauge volatility by looking at a currency pair’s average true range or by looking at range as percent of spot.
    The higher the level of currency volatility, the higher the degree of risk, and vice versa. Volatility and risk are usually used as interchangeable terms.Different currency pairs have different levels of volatility on average.
    Some traders enjoy the higher potential rewards that come with trading volatile currency pairs. Although, this increased potential reward does present a greater risk, so traders should consider reducing their position sizes when trading highly volatile currency pairs.
    WHAT ARE THE MOST VOLATILE CURRENCY PAIRS?
    The most volatile major currency pairs are:
    AUD/JPY (Australian Dollar/Japanese Yen) NZD/JPY (New Zealand Dollar/Japanese Yen) AUD/USD (Australian Dollar/US Dollar) CAD/JPY (Canadian Dollar/Japanese Yen) AUD/GBP (Australian Dollar/Pound Sterling) Other major currency pairs, like EUR/USD, USD/JPY, GBP/USD and USD/CHF, are generally more liquid and less volatile as a result. That said, emerging market currency pairs, such as USD/ZAR, USD/TRY and USD/MXN, can clock some of the highest volatility readings.
    MOST VOLATILE CURRENCY PAIRS
    Majors - AUD/JPY, NZD/JPY, AUD/USD, CAD/JPY, GBP/AUD
    Emerging Markets - USD/ZAR, USD/TRY, USD/MXN
    Aside from relatively low liquidity, emerging market currencies tend to be highly volatile in particular due to inherent risk underpinning emerging market economies. The chart below gives an example of how volatile emerging market currencies can be, which shows USD/ZAR (US Dollar/South Africa Rand) exploding nearly 25% higher in just over a month’s time. There are several other examples of emerging market currency pairs swinging drastically like this throughout history.
    WHAT ABOUT THE LEAST VOLATILE CURRENCY PAIRS?
    The least volatile currency pairs tend to be the major currency pairs which are also the most liquid. Also, these economies tend to be larger and more developed. This attracts more trading volume and facilitates greater price stability in turn. To that end, considering EUR/USD, USD/CHF and EUR/GBP trade with high volumes of liquidity, it comes as little surprise they are among the lease volatile currency pairs.
    Illustrated below, the average true range (ATR) on USD/CHF ranges between 45-pips and 65-pips, a low average true range compared to other pairs. The average true range of a currency is one of the many ways to measure the volatility of a currency pair. Bollinger Band width is another popular technical indicator used to measure volatility.
    Correlation between two currencies can also have an impact on their volatility. The more positively two currencies are correlated to one another might lead to less volatility. Continuing with our USD/CHF example, we note that the US Dollar and Swiss Franc are both viewed as safe-haven currencies.
    The US Dollar and Swiss Franc tend to strengthen against their sentiment-linked peers when the market experiences episodes of risk aversion, but the two currencies may not deviate much from each other. This contributes to relatively low volatility readings for USD/CHF
    HOW TO TRADE CURRENCY PAIR VOLATILITY
    Forex traders should take into account current readings of volatility and potential changes in volatility when trading. Market participants should also consider adjusting their position sizes with respect to how volatile a currency pair is. Trading a volatile currency pair might warrant a reduced position size.
    Awareness of volatility can also help traders determine appropriate levels for stop loss and take profit limit orders. Furthermore, it is important to understand the key characteristics separating themost volatile currencies from currencies with low volatility readings. Traders should also know how to measure volatility and have an awareness of events that might create big changes in volatility.
    The difference between trading currency pairs with high volatility versus low volatility
    Currencies with high volatility will normally move more pips over a certain period than currencies with low volatility. This leads to increased risk when trading currency pairs with high volatility. Currencies with high volatility are more prone to slippage than currency pairs with low volatility. Due to high-volatility currency pairs making bigger moves, you should determine the correct position size to take when trading them. There are several ways to measure volatility
    To determine the correct position size, traders need to have an expectation of how volatile a currency can be. A variety of indicators can be used to measure volatility like:
    Average true range (ATR). Donchian channels. Moving averages (by comparing the moving average to the current price). Traders can also look at implied volatility readings, which reflect the level of expected volatility derived from options.
    Key things traders should know about volatility:
    Big news events like Brexit or trade wars can have a major impact on a currency’s volatility. Data releases can also influence volatility. Traders can stay ahead of data releases by using an economic calendar. Volatile currency pairs still obey many technical aspects of trading, like support and resistance levels, trendlines and price patterns. Traders can take advantage of the volatility using technical analysis in combination with strict risk management principles. Staying up to date with the latest forex pair news, analysis and rates can help you predict possible changes in volatility. We provide comprehensive trading forecasts to help you navigate the market. DailyFX hosts daily webinars to answer questions and help traders prepare for volatile market conditions. Supplement your forex learning and strategy development with the DailyFX Education Center. If you’d like to follow prices in the pairs listed above, the demo account can allow access to a live price feed along with a full suite of tools, charts and indicators. Click here to request a free demo with IG group

    Written by Rich Dvorak, Analyst for DailyFX
    07 July 2021
  22. ArvinIG

    Will IAG and easyJet shares soar higher?

    By ArvinIG,


    Market News
    Although airline groups IAG and easyJet are seeing uneven paces of recovery across their key markets, research teams mostly kept a rosy outlook.

    Source: Bloomberg   Shares International Airlines Group EasyJet Airline British Airways Iberia   International Consolidated Airlines Group (LON: IAG) share price rises 1.3% to 169.98 pence easyJet (LON: EZJ) reaches 828.60 pence per share The transatlantic reopening may be the next big catalyst, analysts say IAG’s rebound will depend on its key unit British Airways Interested in trading IAG and easyJet shares? Open an account with us to get started. IAG and easyJet stock prices: what’s the latest?
    Shares of Anglo-Spanish airline holding company International Consolidated Airlines Group SA, also known as IAG, jumped 1.3% to finish Wednesday at 168.98 pence.
    British low-cost airline group easyJet’s stock gained 0.6% to close at 828.60 pence.
    As of Wednesday, research teams were largely bullish on both counters, Bloomberg data showed. For easyJet, 16 analysts recommended ‘buy’, seven said ‘hold’, while two suggested ‘sell’. Their average 12-month target price on easyJet was 1,046.53 pence.
    Meanwhile, IAG attracted 20 ‘buy’ calls, seven ‘hold’ ratings, and one ‘sell’ recommendation. The average target price stood at 227.85 pence.
    IAG’s performance hinges on British Airways’ international recovery
    Barclays stayed ‘neutral’ on the European transport sector, rating IAG ‘overweight’ and easyJet ‘equal-weight’. Although some demand is returning, there remains balance-sheet risk in the sector, with wait-and-see approaches for IAG and easyJet, the bank’s analysts said.
    All eyes will be on September for the two-way transatlantic reopening, which is the next big catalyst for network airlines, Barclays added.
    For IAG, there is clear varied performance across the group, with fewer restrictions supporting performance at Iberia and Vueling, while the restricted transatlantic market and UK/Irish government measures are impeding British Airways and Aer Lingus, Barclays wrote.
    Bloomberg Intelligence (BI) wrote that the group’s recovery will hinge on its key unit British Airways’ international routes. British Airways is hampered by long-haul flight exposure, with consensus not seeing a return to pre-pandemic sales until at least 2024.
    ‘Capacity has been cut, but transatlantic travel is needed to rebuild profit, in our view,’ BI analysts said. Digital safety passports may unleash some European demand for Iberia and Vueling, which have also adapted to target dometic travel in Spain. These certificates can also help Aer Lingus rejoin the skies, BI added.
    What’s your view on IAG and easyJet? Take positions on both airline stocks today
    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)
    Analysts mixed on easyJet shares
    On easyJet, Deutsche Bank sees scope for the budget carrier to carry 95.5 million passengers in its fiscal year to September 2023, just shy of the 96.1 million carried in FY2019. It reiterated ‘buy’ with a 1,150-pence price target.
    Barclays noted that easyJet is seeing better performance in continental Europe than in the UK. Possible catalysts for EZJ include the second phase of the new cabin-bag policy, to be introduced in autumn; the £500 million cost-out programme, on target for year-end; and the upcoming balance-sheet review with its full-year results.
    JPMorgan remained ‘neutral’ on easyJet, due to uncertainty over the Delta variant of the coronavirus and uncertainty over the outcome of the capital structure review.
    Cost headwinds such as higher interest charges and higher aircraft ownership costs could also offset most of the savings the airline has targeted since the pandemic started, JPMorgan said.
    Kelvin Ong | Financial writer, Singapore
    12 August 2021
  23. ArvinIG

    Qantas FY21 earnings preview

    By ArvinIG,


    Market News
    We look at some of the key things investors and traders should be aware of before the blue-chip airline reports its full-year results.

    Source: Bloomberg   Shares Qantas Airline COVID-19 pandemic Jetstar Stock trader   Qantas share price under pressure
    The Qantas (ASX: QAN) share price has tumbled over the last month, falling a little over 7%, opening Monday's session at $4.25 per share. At those price levels the company has an implied market capitalisation of $7.97 billion, but the earnings outlook remains unstable.
    The market – ever-focused on the short-term – has good reason to be worried. In 2020, the pandemic bore an obvious impact on airline and travel stocks and their share prices took a correspondingly large hit, with Qantas trading at a covid-low of $2.03 per share.
    The market would rebound of course, as Australia, for the most part, successfully navigated the covid-19 pandemic in 2020. This notion of a rebound looks to have lost steam in 2021, as the country faces mounting covid-case counts and fresh lockdowns.
    Qantas and investors were hoping that in lieu of international travel, that the airline could keep its operational performance buoyed by the domestic market. Speaking to the frame of mind in early 2021 – Australia’s competition watchdog – the ACCC – in March observed that Qantas' domestic network reach had mostly recovered to pre-covid levels. Specifically, it was noted that by December 2020 the airline was servicing 142 domestic routes, up significantly from 113 route services in September 2020.
    Click here to read our beginners’ guide to fundamental analysis.
    Confidence wanes
    That confidence ran-up in April. As part of a market update, Qantas said that it had seen 'Group Domestic capacity increasing beyond previous estimates to reach 90 per cent of pre-COVID levels in Q4 FY21,' while Jetstar, Qantas' low-cost arm, was at the time expected 'to exceed 100 per cent due to strong leisure demand.'
    Those figures however have fallen strongly off the back of the latest Greater Sydney covid outbreak, with management in early August saying that 'Qantas and Jetstar have gone from operating almost 100 per cent of their usual domestic flying in May to less than 40 per cent in July because of lockdowns in three states.'
    Despite that added clarity, investors are likely anxiously awaiting more insight into where Qantas’ management believe domestic capacity will sit in the coming financial year.
    Recent covid restrictions have revealed other quantifiable impacts, with the airline recently saying it would stand down 2,500 of its staff as a result of border closures.
    'The standdown is a temporary measure to deal with a significant drop in flying caused by COVID restrictions in Greater Sydney in particularly and the knock-on border closures in all other states and territories,' management said.
    The airline noted that it expected no job losses from this decision.
    All of this hasn’t stopped the sell-side from favourably viewing the airline. Indeed, analysts overwhelmingly like the stock: according to Market Index, Qantas currently commands a Strong Buy rating, on average. That bullish rating is made up of 10 Buy recommendations, 1 Hold recommendation and 1 Sell recommendation, also according to Market Index.
    Qantas is set to release its FY21 results this Thursday, 26 August.
     
    Take your position on over 13,000 local and international shares via CFDs or share trading – and trade it all seamlessly from the one account. Learn more about share CFDs or shares trading with us, or open an account to get started today.
    Shane Walton | Financial Writer, Australia
    23 August 2021
  24. ArvinIG
    Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 29th November 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
    RLI US
    29/11/2021
    Special Div
    2
    RTY
    FULT US
    30/11/2021
    Special Div
    0.08
    RTY
    ITIC US
    30/11/2021
    Special Div
    18
    RTY
    BBC US
    30/11/2021
    Special Div
    3
    RTY
    IIIN US
    12/01/2021
    Special Div
    2
    RTY
    NSP US
    12/03/2021
    Special Div
    2
    RTY
    TLYS US
    12/06/2021
    Special Div
    1
    SPX
    WRB US
    12/06/2021
    Special Div
    1
     
     
    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.
  25. ArvinIG

    3 green ETFs to buy in Q3

    By ArvinIG,


    Analyst Article
    Which environmentally-friendly and renewable ETFs could be worth looking at now?

    Source: Bloomberg   Indices Shares ETF Renewable energy Fuel S&P 500   Looking to put your money into sustainable and environmentally-friendly industries, such as electric vehicles, clean energy and technology or actively avoid investing in fossil fuel companies? According to research by Allied Market Research, the global green technology and sustainability market size was valued at $10.32 billion in 2020. It is forecast to hit $74.64 billion by 2030, growing at a compound annual growth rate of 21.9% from 2021 to 2030.
    Investing in exchange-traded funds (ETFs) can be a good way of doing this affordably and spreading risk. They work by automatically tracking an index, such as the S&P 500 Fossil Fuel Free Index, or a specific sector, like technology, media and telecoms.
    It’s possible to purchase ETFs in a number of different types of investments, including equities and bonds. Like actively managed funds, they invest in a wide basket of investments, spreading the risk, but without the cost of human fund managers.
    As they passively track an index or sector, their charges tend to be lower. Click here to read IG’s handy guide to investing in ETFs and how they work.
    Here are three green ETFs we think might be a good option to invest in.
    iShares Clean Energy UCITS ETF
    The iShares Clean Energy ETF is one of the biggest funds of its kind on the market. Valued at $6.7 billion, it tracks the S&P Global Clean Energy Index, investing in major corporations producing solar, wind and hydro-powered energy. Its benchmark index tracks the performance of around 30 of the biggest global clean energy corporations that meet its investment criteria.
    Launched in 2007 and run by Blackrock, the fund has an expense ratio of 0.65%, which is slightly more expensive than other exchange-traded funds.
    Its top ten holdings include US company Enphase Energy Inc, which produces solar panels and solar storage solutions, Israeli firm Solaredge Technologies, which makes solar inverters for photovoltaic arrays, Danish firm Vestas Wind Systems, which produces and services wind turbines, Consolidated Edison, which has invested $3 billion in clean energy and Orsted, another Danish energy giant, which runs some of the biggest offshore wind farms in the world.
    Over five years the fund has delivered an annualised return of 21.2%, according to iShares, 28.5% over three years and -0.93% over one year.
    SPDR S&P 500 Fossil Fuel Reserves Free ETF
    Would you like to invest in major US companies but avoid putting your money in companies associated with fossil fuels? The SPDR S&P 500 Fossil Fuel Reserves Free ETF, run by State Street Global Advisors, seeks to emulate the performance of the S&P 500 Fossil Fuel Free Index. Its benchmark aims to enable green investors to invest in large cap US companies but filter out those exposed to fossil fuel industries. As such, it avoids investing in any firms in the oil and gas, coal and chemical sectors.
    The ETF, which boasts $1.2 billion in assets under management, has a gross expense ratio of 0.2%. Launched in 2015, it has 488 holdings. Among its top 10 are Apple, Microsoft, Amazon, Berkshire Hathaway, Alphabet, UnitedHealth, Johnson & Johnson and Tesla.
    The fund’s recent performance is mixed, however, growing NAV by 11% over five years, 10% over three years and -12% over one year.

    Source: Bloomberg Global X Autonomous and Electrical Vehicles ETF
    Electric vehicles are a major part of the greenification of global transport going forward. The European Union will outlaw the sale of new petrol and diesel vehicles by 2035, while California has just brought in a similar ban.
    The Global X Autonomous and Electric Vehicles ETF tracks the Solactive Autonomous and Electric Vehicles Index, seeking to replicate its performance. At the end of August, the fund, which launched in 2018, had just under $1 billion in funds under management and is in the technology, media and telecoms sector.
    Its benchmark index invests in companies involved in different aspects of autonomous and EV software and hardware, including EV producers, makers of lithium batteries and producers of lithium and cobalt. According to the fund, global EV sales rose 40% in 2020 but still only account for 5% of vehicle sales.
    The ETF currently invests in 75 stocks and among its top ten holdings are Tesla, Nvidia, which makes specialist chips, Apple, Microsoft, Alphabet – Google’s parent company – and Qualcomm, as well as traditional car makers Toyota and Ford. It has an expense ratio of 0.68% and delivered an NAV return of 22.2% over three years but is currently down 20.8% over one year.
    You can find out more about investing in renewable shares here.

    Piper Terrett | Financial writer, London
    01 September 2022
    Take your position on 17,000+ shares with the UK’s No.1 platform.* Learn more about trading or investing in shares with us, or open an account to get started today.
    * Best trading platform as awarded at the ADVFN International Financial Awards 2022

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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk.

The value of shares, ETFs and ETCs bought through a share dealing account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results.

CFD accounts provided by IG Markets Ltd, spread betting provided by IG Index Ltd and share dealing and stocks and shares ISA accounts provided by IG Trading and Investments Ltd. IG is a trading name of IG Markets Ltd (a company registered in England and Wales under number 04008957), IG Index Ltd (a company registered in England and Wales under number 01190902) and IG Trading and Investments Ltd (a company registered in England and Wales under number 11628764). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. IG Markets Ltd (Register number 195355), IG Index Ltd (Register number 114059) and IG Trading and Investments Ltd (Register number 944492) are authorised and regulated by the Financial Conduct Authority.

The information on this site is not directed at residents of the United States, Belgium or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

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