[Gold price lower ahead of key China-US data events]

Crude prices were marginally lower on Monday but remained elevated after six weeks of gains following Saudi Arabia extending crude output cuts into September. IGTV’s Angela Barnes has more.

Commodities Petroleum Price of oil

 

IG Analyst | Publication date: Monday 07 August 2023 14:00

(Video Transcript)

Crude price remain high

With Angela Barnes, IG financial analyst

Crude oil prices remain elevated today on supply concerns. Prices are marginally lower today but remain elevated as I said after six weeks of gains with Saudi Arabia deciding last week to extend crude output cuts into September and Russia also reduced it in exports.

Let's first of all look at the Brent charts. It's trading down now, actually about 0.8%, so just marginally lower. It's been very flat this morning and trading around $85 a barrel but since 20 June, though Brent has gained nearly 20% supported by those supply tightness concerns.

WTI trading down

If we turn to the US WTI crude price chart now you can see that the price is also down about 0.82% and WTI is trading about $81 a barrel, the price also marginally lower but remaining elevated too just like Brent with its price up around 17% since 20 June.

Meanwhile, a slow recovery in Chinese demand and inflationary pressures have been putting pressure on oil prices.

[Stops on USA Stocks]

5 hours ago, BrinDD said:

I'm trying to place a Stop Order on some  US shares (not CFD's) I'm holding. However when I try place the Sell order it only shows a Limit Option in the drop down. There is not option for a Stop or Trailing Stop?

Any advice appreciated. Thanks

 

Hi @BrinDD,

Thank you for your post on stops on US shares.

Kindly advice which type of account you are trying to place the stop to sell on? Please be mindful of the fact that no stop losses, trailing stops or guaranteed stops are available with share dealing.

Looking forward to your response,

KoketsoIG.

[Price level alerts]

1 hour ago, grechster said:

Anyone able to help please?

Hi @grechster,

Thanks for you post.

Please note that I have responded via private message as I will be requiring your personal details in order to have a look at this.

All the best

-KoketsoIG

[IGTV on Demand]

Stocks poised for slight increase

Stocks are expected to open slightly higher, with a focus on upcoming earnings releases and economic data from the US and China.

 

Indices Commodities Inflation United States China Interest rate

 

 Angeline Ong | Financial Analyst, Presenter and Content Editor, London | Publication date: Monday 07 August 2023 09:34

Stocks overview

Stocks are expected to open slightly higher, with a focus on upcoming earnings releases and economic data from the US and China.

Hathaway

Hathaway has reported its highest-ever operating profit, while investors were analyzing the recent Halifax reading for the UK health filters sector. The company reported its highest-ever quarterly operating profit, primarily due to rising interest rates and better results in the car insurance unit.

European market

The European market is about to open, with slight increases expected in the FTSE and DAX, but volatility will be impacted by the Bank of England's interest rate hike. France 40 remained mostly unchanged or slightly higher.

Asian share market

Moving to Asia, share markets were cautious due to a mixed US jobs report, leading to a bond rally. Japan's central bank is set to release its summary of opinions for its meeting where adjustments will be made to the yield curve control policy.

US jobs

Wall Street has closed mostly down, with mixed earnings reports and slower US jobs growth affecting the market.

Apple

Apple shares fell, impacting the S&P 500, while Amazon saw an increase after announcing a brighter outlook for the third quarter. Looking ahead to the US market, the pre-market showed a similar cautious sentiment as investors awaited more earnings releases and key inflation data.

China's trade and industrial data

China's trade and industrial data, to be released later in the week, were expected to provide insights into the country's recovery. However, the rebound in China has been limited, with companies like Unilever, Nissan, and Caterpillar warning of slowing earnings. Only a few sectors, like travel, dining, and luxury goods, have seen double-digit sales growth.

UK housing market

German industrial production, fell more than expected in June. On the other hand, the UK housing market showed resilience as first-time buyers sought smaller homes to offset borrowing cost increases.

Oil overview

In the oil market, Saudi Arabia extended its output cut, causing oil prices to edge lower, albeit remaining near the highest levels since mid-April.

Gold overview

Gold prices have been volatile due to inflation concerns and anticipation of US inflation numbers.

 

This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.

[AUD/USD faces downward pressure: Risk aversion and RBA's rate decisions impact]

Explore the factors behind the AUD/USD's third consecutive week of decline, including risk aversion selling, RBA's rate decisions, and the influence of global bond market dynamics.

Source: Bloomberg

 

Forex United States dollar Bond AUD/USD Australian dollar Risk

 Tony Sycamore | Market Analyst, Australia | Publication date: Monday 07 August 2023 08:19

Last week, the AUD/USD closed lower for a third consecutive week due to risk aversion selling and following the RBA's decision to keep rates on hold at 4.10%.

Impact of global events on AUD/USD

The risk aversion selling was triggered by a significant rise in yields on the typically stable US 30 bond during the week. The US Treasury's unexpected announcement of larger sizes for upcoming auctions caught the market off guard, leading to bond market malaise. This was further exacerbated by spillover effects from the BoJ's meeting, which saw a slight adjustment to YCC, and the Fitch downgrade of the US credit rating.

We firmly believe that it is not just the direction of yields that influences cross-asset volatility, but rather the speed of the movement that causes dislocation.

Hence, market participants will closely monitor this week's quarterly auctions of 10-year notes and 30-year bonds to gauge the level of demand. Any signs of bond market indigestion may quickly impact other risk assets, including the AUD/USD.

Domestic factors influencing AUD/USD

On the domestic front, key events influencing the AUD/USD will be Tuesday's consumer and business confidence surveys. With the RBA's decision to hold rates and lower inflation, we expect consumer sentiment to rebound towards 85 from the previous 81.3. Meanwhile, the NAB Business Confidence index is likely to see a slight decline from 0 to -1.

[IG Morning Call]

In Asia, the markets have seen a slow start to the week, with no significant news to drive any major movements. Recent comments made by board members at the Bank of Japan indicate that they view raising the cap on bond yields as a means to prolong the period of accommodative monetary policy, rather than a step towards its imminent end. Investors will be closely watching the inflation figures from both the United States and China this week, as they pose significant tests for the market. Last month's downside surprise in U.S. CPI had a substantial positive impact on markets, so there is a risk that meeting expectations might disappoint investors.

[Clarity on overnight funding costs]

Hi @ssukha,

Thank you for the post.

As mentioned in your post above, the overnight adjustment is broken down into two parts: the daily movement along the futures curve (basis), and the IG charge. 

The basis equates to the daily movement of our undated price along the futures and may be a credit or a debit. This will either be a positive or negative number depending on the direction of your trade and the slope of the forward curve. In addition, the magnitude of the basis will depend on the spread between the front and back future, big spreads will cause big overnight adjustments. 

For example, if you were short, and the next future contract was lower than the front contract then the adjustment would be a debit. So it is not necessarily that short trades equate to credits.

If you need further clarifications related to the overnight costs on your account, please reach out to helpdesk.uk@ig.com.

I hope this helps.

KoketsoIG

[demo account Vs real account]

52 minutes ago, Ant1971 said:

hello, anyone any experience of the difference in these ? is the data in demo account exactly the same ? can you expeect the same returns in the same situations or is it changed from demo to live ?

 

any help would be great 

 

thanks 

Hi @Ant1971

Thank your for contacting us.

Please be informed that we try to keep our demo accounts as similar to the live accounts as possible. This means that you’ll find much of the functionality very similar to using a live account, but there are key differences. These include (but are not limited to):

- Trades made through the demo account will not be subject to slippage, interest or out-of-hours price movements.
- Trades may be rejected if you have insufficient funds to open them, but, unlike on a live account, will never be rejected on the grounds of size or price.
- Trades will not be closed if you have insufficient funds to cover margin and running losses, which can happen on a live account.

All the best,

KoketsoIG

[Edit position data on platform]

9 minutes ago, nerak99 said:

I have a partial answer. On the phone app, clicking on the share name in the positions screen will open a series of field where I can edit the Book Cost.

Still can't figure this out on the desktop website

Hi there @nerak99

Thank your for contacting us today.

Please follow the following steps to edit your book cost on the desktop platform:

1. Select the Positions tab in the side-bar and click ‘add to workspace’.

2. Click on the menu button next to Market, then select book cost.

3. You can adjust the book cost by clicking on the value directly. See how it will affect the average price and P&L by clicking on the dropdown arrow to the left.

4. Click ‘set book cost’ or simply click elsewhere on the screen to confirm.

 

You can also follow the link to our platform for your reference: Book Cost Editing

Thanks,

KoketsoIG.