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  1. Brexit draft has been backed up by the cabinet where Theresa May will announce a speech on Thursday to the Parliament, however, there are assumptions that this could end with a vote of no confidence China delivering a written response to the US demands for wide-ranging trade reforms, which could potentially end the trade war between the two countries Bitcoin market capitalisation declines to its lowest level since October 2017, falling to under $100billion. Ethereum and XRP also decline by 13% and 15% respectively Oil prices fall to its lowest with Brent crude falling almost 7% and US Oil over 7% ASEAN summit starts without Trump in sight, leading to beliefs that Washington may not be as “committed to Asia” as expected, according to Capri, visiting senior fellow at the National University of Singapore GBP rose against the USD by 0.2% as of 2:22pm on Wednesday, from $1.29 earlier in the day Aramco to purchase SABIC, the world’s fourth-biggest petrochemicals company, and to then potentially list downstream oil assets S&P 500 traded lower by 0.3%, the Dow Jones Industrial Average rose by over 200 points early Wednesday, however has now declined by 72 points Germany’s economy declines as initial third-quarter growth shows a fall of 0.2% quarter-on-quarter Italy’s budget deficit to remain at 2.4% Asian overnight: A mixed session overnight saw gains in Japan counteracted by weakness across most of the other major markets. The Australian ASX 200 was the notable underperformer, falling over 1% thanks to substantial weakness across the energy sector in the wake of the crude decline. That decline was partly down to the OPEC monthly report which saw markets shift focus onto the oversupply that seems likely in 2019. Data-wise, we have seen a whole host of economic releases, with Japan falling into negative growth for Q3 (-0.3%), while Chinese releases fared somewhat better given the rise in fixed asset investment and industrial production. UK, US and Europe: The main focus of today is likely to be on Brexit concerns, given yesterday’s breakthrough in talks. May believes it was a “decisive step” in the procedure with the UK leaving the EU, and is expected to give a statement to the House of Commons on Thursday morning. The 585 paged draft deal includes a 21-month transition period, including a commitment to protect the rights of the EU nationals in the UK, as well as ensuring physical checks will not be reintroduced between the Irish border. The final agreement is far from assured a safe passage, and thus the market reaction is likely to be heavily impacted by the ability to pass through Parliament. With that in mind, expect sterling volatility, with any signals of how the votes might go likely to play a major role. Also watch out for the latest inflation data, with UK CPI expected to rise to 2.5% today. In mainland Europe, markets will be keenly following the latest eurozone Q3 GDP number, alongside the industrial production figure. Finally, the US follows on from the UK with the inflation theme, where CPI is expected to rise to a nine-month high. Economic calendar - key events and forecast (times in GMT) Source: Daily FX Economic Calendar 9.30am – UK retail sales (October): sales to fall 0.4% MoM and rise 3.6% YoY from -0.8% and 3% respectively. Market to watch: GBP crosses 1.30pm – US Empire state mfg index (November), retail sales (October): index to fall to 20.5 from 21.1. Sales to rise 0.4% MoM from 0.1%. Market to watch: USD crosses 4pm – US EIA crude inventories (w/e 9 November): delayed by a day due to Veterans Day, stockpiles to rise by 1.9 million barrels from an increase of 5.7 million a week earlier. Markets to watch: Brent, WTI Corporate News, Upgrades and Downgrades 3i Group said that total return increased by 10% in the first half of the year rose 10% to £728 million, and net asset value per share rose 7.2% to 776p. Aston Martin said that adjusted earnings in Q3 rose to £54 million from £28 million a year earlier. Car sales doubled to 1776 in the period. Great Portland Estates will buy back £200 million o shares after strong demand for London real estate. Pre-tax profit to 77% to £40.4 million for the first half. Apple’s shares fall by more than 2%, declining to around $886billion from its record high of $1.13trillion House of Fraser to continue to close another four stores Flybe issued a profit warning and is now up for sale Uber figures shows a loss of around $1.07billion in its last three months to September Huawei plans to develop its voice assistant to work outside China, which could potentially cause competition between Google and Amazon Air France-KLM raised to buy at Kepler Cheuvreux Wirecard upgraded to buy at DZ Bank Vivo Energy raised to overweight at Morgan Stanley Aggreko downgraded to equal-weight at Barclays Continental downgraded to neutral at Citi CRH downgraded to neutral at Exane IGTV featured video Information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
  2. Hello @Wilsby, Unfortunately Baudi Inc ADR cannot be added onto your ISA portfolio due to recent regulations with its main listing. Apologies
  3. China’s dollar denominated imports and exports rise by 21.4% and 15.6% respectively, in comparison to year ago, however, its overall trade surplus was lower than expected, valued at $34.01billion for October, versus $35billion US Attorney General Jeff Sessions fired by Trump where Matthew Whitaker, his Chief of Staff to take over temporarily Theresa May announces that the withdrawal deal is 95% complete, and invites Cabinet Ministers to read the UK’s draft deal with the EU General secretary of Merkel’s CDU, Annegret Kramp-Karrenbauer, assumed to be the next leader, according to experts US to enforce final anti-dumping and anti-subsidy duties, increasing from 96.3% to 176.2% on Chinese common aluminium sheet products Reserve Bank of New Zealand official cash rate remains at 1.75% UBS Group expecting to be sued by the US department of Justice in relation to the mortgage securities from 2006 Stocks in Asia rise with the Hang Seng index increasing by 0.96%, Shanghai composite rise by 0.61% and Shenzhen composite 0.6% Last week’s US oil production figures increases to 11.6million barrels a day Australia to generate a new investment fund of A$2billion to deliver loans to Pacific Nations to build infrastructure International Energy Agency expects Nuclear power production to develop by 46% by 2040, with the majority of the net increase from China and India Asian overnight: Stock markets are on the rise once more today, with China providing the single outlier to a largely positive overnight session. Japanese markets were the big outperformers, as traders shift out of the safe haven Yen in the wake of yesterdays midterm election results. We also saw Japanese economic data slip, with bank lending and core machinery orders both falling short of expectation. The New Zealand dollar has been rising gradually, after the RBNZ kept rates steady as expected. Meanwhile, Chinese trade data received a welcome boost, with a rise in both imports and exports, despite trade war fears. To a large extent this is expected to represent a move to front load transactions ahead of the imposition of tariffs. UK, US and Europe: Keeping on the theme of trade data, the German figures have not been as kind, with imports and exports both slipping into negative growth. Keeping in the eurozone, look out for the EU economic forecasts later in the morning. However, all eyes will turn towards the US, with the FOMC providing their latest monetary policy decision. Markets expect to see little change this time around, gearing us up for a final hike in December. President Donald Trump, who had criticised his top law official for many months, fires US Attorney General Jeff Sessions, who will be replaced by Matthew Whitaker, his Chief of staff. Whitaker has been assigned to look into special counsel Robert Mueller’s investigation of Russian meddling in relation to the 2016 US election. Theresa May claims that the withdrawal deal is 95% complete, although an agreement in relation to the hard border in Northern Ireland has not come to a conclusion. Even though the deal is not fully complete, the Cabinet Ministers have been invited to read the UK’s draft deal with the EU. Economic calendar - key events and forecast (times in BST) Source: Daily FX Economic Calendar 1.30pm – US jobless claims (w/e 3 November): initial claims to fall to 213K from 214K. Markets to watch: US indices, USD crosses 7pm – FOMC decision (delayed by a day due to elections): no change is expected at this meeting. Markets to watch: US indices, USD crosses Corporate News, Upgrades and Downgrades AstraZeneca said that Q3 earnings fell by 37% to 71 cents per share, while revenue was down 14% at $5.34 billion. The full-year outlook was retained, with core earnings per share of $3.30 to $3.50. Burberry reported an 8% rise in adjusted operating profit, to £178 million, although sales were down 3%. The interim dividend was left unchanged at 11p per share. Sainbury’s suffered a 40% drop in half-year profits, to £132 million, due to restructuring costs and expenses arising from a planned merger with Asda. Excluding exceptionals, pre-tax profits rose 20% to £302 million. The outlook for Christmas trading remained uncertain, and profit margins in the general merchandise division remain under pressure. Samsung announced on Wednesday that they will release a smartphone which can fold in half Tesla chair of the company’s board replaced by Robyn Denholm Societe Generale net income increases 32% in comparison to last year, as third-quarter results are announced. It’s net income reported at 1.2billion Euros versus expectations of 995million Euros Siemens fourth-quarter profit declines by 46% to 681million Euros, but higher than the expectations of 595million Netflix to focus its expansion on the audience in the Asian market, particularly focusing on India, as this is believed to be the bulk of the growth Facebook blocking over 100 Facebook and Instagram accounts as they receive a tip-off in regards to the accounts from law enforcement, which they believe it could be linked to Russia’s Internet Research Agency Microsoft to tackle cybersecurity, wanting to work with Trump and Congress Hyundai Motor and Kia Motors to invest an extra $250million in Grab, a Singapore-based technology company Ping an Technology contributed 6.3% of Ping an Group’s operating profit in the first three-quarters of 2018, in comparison to 0.9% last year Campari upgraded to neutral at Goldman Grieg Seafood upgraded to accumulate at Fearnley United Internet upgraded to buy at Commerzbank Stabilus upgraded to buy at Bankhaus Lampe CGG downgraded to equal-weight at Morgan Stanley Evonik downgraded to equal-weight at Barclays G4S downgraded to sector perform at RBC Kendrion downgraded to hold at ING IGTV featured video 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.
  4. Philip Hammond to announce the last UK annual budget plan before Brexit on Monday HSBC announces a rise in profit before tax of around 28% year-on-year to $5.922billion IBM to acquire Red Hat for $34billion, buying all shares at $190 each Jair Bolsonaro wins Brazilians Presidential election with just over 55% of votes Merkel’s Christian Democratic Union votes falls to 28% from 38.3% from the last election Economic growth for China fell short of expectations, including an economic slowdown in recent shipping data Investcorp to increase investment in the US, as well as looking to expand into the Asian markets, particularly China and India Michael Higgins wins 56% of votes and re-elected as Irish president Italian government to step in if a crisis in the banking sector occurred Crude oil continues to drop, declining around 12% and working on its worst month since 2016 Shanghai composite and Shenzhen composite falling by 0.95% and 0.83% in this mornings trade, whereas, the Nikkei 225 increases by over 1% and ASX 200 by 0.98% SIT Investment Associate’s warns that the bond market could surge on spiking interest rates Asian overnight: Another bearish session overnight saw losses across the majority of markets, with Chinese stocks hit hardest after the Shenzhen composite dropped 3%. The technology sector was once again targeted by sellers, with Japanese markets being impacted by a significant selloff. We also saw Japanese retail trade data fall from 2.7% to 2.1% Philip Hammond is set to announce the latest UK annual budget plan at 15.30 UK, US and Europe: Looking ahead, a somewhat quiet economic calendar sees a focus on US data, where personal spending and the core PCE price index data should provide some form of volatility for dollar volatility. The government is to reconsider a new budget plan if a Brexit deal with the EU does not come into plan. Mr Hammond explains that the original budget forecast was based on an “average-type free trade deal”, therefore if the UK leaves without an agreement, this could change. The forecasted budget is pressured to add extra funds for the universal credit rollout, after claims that millions of households could potentially lose money under the new system. It also has plans to release expected budgets of around £30billion for roads in England, £900million in business rates and £650million to rejuvenate high streets, as well as an increase of £2billion on mental health services and another freeze in fuel duty. South Africa: Commodity prices are trading mostly lower this morning, while the dollar remains firm. The rand is weaker against the majors. Tencent Holdings is down 1% in Asia, suggestive of a softer start for major holding company Naspers. BHP Billiton is trading 1.4% higher in Australia this morning, suggestive of a higher start for local resource counters. Economic calendar - key events and forecast (times in BST) Source: Daily FX Economic Calendar 12.30pm – US personal income & spending (September): income to rise 0.3% MoM and spending to rise 0.4% MoM. Market to watch: USD crosses 11.30pm – Japan unemployment (September): rate to rise to 2.5% from 2.4%. Market to watch: JPY crosses Corporate News, Upgrades and Downgrades HSBC posted better than expected profits in Q3, following a reduction in costs, with adjusted pre-tax profits coming in at $6.19 billion (up 16%). The ability to rein in costs is positive going forward, with operating expenses falling 6.9% to $7.97 billion over the period. Ford’s production line in Bridgend to close from the 29th October to 2nd November Asda to potentially cut up to 25,000 jobs as they begin consultations with staff in regards to job roles and working hours Hitachi shares decline around 8% as its Chemical Co enters its second falsification scandal this year Barclays to not face trial over its emergency fundraising from Qatar in 2008 financial crisis MTN Group For the quarter ending 30 September 2018, group service revenue increased by 10,0% y/y and group data revenue increased by 23,9% y/y. Raubex Group Ltd for the interim period, revenue decreased by 4% and headline earnings per share decreased by 72.8% Famous Brands for the interim period, revenue increased by 5.4% and headline earnings per share by 10.6% Royal Gold Downgraded by Zacks Investment Research to Strong Sell IGTV featured video Information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
  5. Japan and China sign a bilateral currency swap to improve financial stability Asia predicted to be more vulnerable than the US in regards to the sell-off in global stock markets, according to managing director of FX strategy for BK Asset Management US Futures direct more than a 200-point drop for Dow Jones, after seeing a slight recovery on Thursday Amazon shares drop nearly 9% in after-hours trading, regardless of hitting record profits of nearly $2.9billion in the last quarter in comparison to $256million last year, and sales increasing 29% in the third-quarter to $56.6billion. Revenue for its cloud services business also rises by 46% year-on-year and its advertising business by 122%. Alphabet shares fall 3.9% in after-hours trading as third-quarter sales doesn’t reach expectations Cryptocurrencies remaining stable regardless of global stock market sell-off, with Bitcoin, XRP and Ethereum falling 0.23%, 2.09% and 1.38% in comparison to 4% for Bitcoin and more than 11% for XRP and Ethereum on October 11th UBS’s net profit 32% higher than expected as it increases in third quarter to 1.2billion Swiss Francs As predicted, Turkey’s Central Bank left its benchmark interest rate unchanged, causing the Turkish Lira to initially weaken to 5.71 against the Dollar Net-long positions for EUR/USD reach its second month high, at an estimate of 61.3% Asian overnight: Asian markets are back in the red today, with the Australian ASX 200 providing the only market that kept its head above water. The Chinese Yuan hit the lowest level since the financial crisis overnight, with US-China trade dispute showing no signs of improvement. Data-wise, the Tokyo core CPI figure came in steady at 1%. Japanese Prime Minister met Chinese President in Beijing, signing a bilateral currency swap arrangement, effective until 25th October 2021. According to the Bank of Japan, this agreement will allow the exchange of local currencies of up to 200billion Yuan/3.4trillion Yen between the two central banks. UK, US and Europe: A somewhat quiet economic calendar sees markets focus in on the US GDP reading as the one top tier piece of data worth keeping an eye out for. Market predictions point towards a sharp fall to 2.6% from 4.2% last quarter. Elsewhere, keep an eye out for the latest earnings from Exxon Mobil. US stocks recover on Thursday from its previous lows, with the Dow Jones Industrial Average rising 400 points, S&P 500 gaining nearly 2% and the Nasdaq increasing by 3.2%, in comparison to a fall on Wednesday of 608.01 points, 3.1 and 4.4% retrospectively. However, US stocks decline after Thursday’s close with the Dow Jones and S&P 500 dropping at 5.6% and 7.2% for October, and the Nasdaq falling 9.1%. The on-going concerns of longer border checks at Calais continue as the Brexit Secretary, Dominic Raab, warns The House of Commons of a worst-case scenario, which could lead to the French authorities potentially introducing a “go-slow” policy, if the UK leaves without a deal. Raab suggested to MPs to “prepare for the worst case scenario where the authorities at Calais are deliberately directing a go-slow approach by supporting a diversion of the flow to more amenable ports in other countries”. Economic calendar - key events and forecast (times in BST) Source: Daily FX Economic Calendar 1.30pm – US GDP (Q3, preliminary): growth to be 2.6% QoQ from 4.2%. Markets to watch: US indices, USD crosses Corporate News, Upgrades and Downgrades RBS reported an operating profit before tax of £961 million for Q3 2018, up from £871 million in Q3 2017. The bank is reducing its costs through transformation and digitisation, with expenses for the year falling 3.3% compared with 2017. In preparation for Brexit, the bank has gained approval from the Dutch regulators for a banking license. IAG posted an operating profit of €1,460 million in the nine months to September 30, 2018, up from €1,450 million last year. Rising fuel price and foreign exchange factors provided headwinds for the firm over the period, yet the firm still proposed an interim dividend of 14.5 euro cents per share. Glencore saw improved Copper, Cobalt, Nickel and coal production in the third quarter, with zinc the one disappointing segment of the business. Own sourced copper production was 12% higher than the comparable 2017 period, while cobalt production was up 44%after the firm restarted Katanga's processing operations. Nickel production was 13% higher, reflecting the progressive ramp-up of Koniambo, with its second production line. However, Zinc output fell 5% after African assets were sold to Trevali Mining. Adjusting for that disposal, zinc production was up 7%. Tesla Model 3 to come to the UK and Australia by mid-2019, according to the CEO Nokia to cut thousands of jobs as part of a cost reduction program, after third-quarter profit falls 27% to 487million Euros, in comparison to the previous year at 668million Euros Volvo buys a stake in FreeWire Technoligies Debenhams to close around 50 stores as it hits a record low of a £491.5 loss due to charges on leases and goodwill, the biggest fall in its 240-year history. BT Group CEO Gavin Patterson to be replaced by Philip Jansen from February 1st British Airways face second hack attack which may affect over 185,000 individuals in relation to payment card details being stolen CEO of Google admits the company had sexual harassment issues, causing 48 employees to be fired Burberry upgraded to hold at HSBC Kion upgraded to overweight at JPMorgan Lloyds upgraded to neutral at Macquarie LVMH upgraded to buy at HSBC AB InBev downgraded to hold at Independent Research Covestro downgraded to hold at Berenberg Hexpol downgraded to hold at SEB Equities Valeo downgraded to inline at Evercore IGTV featured video Information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
  6. KatherineIG

    Brexit EU Summit - EMEA Brief 17 Oct

    Trump announces that the Fed is his biggest threat as they are increasing rates ‘too quickly’ Theresa May is to visit Brussels for an EU summit today to agree on the terms of the UK-EU agreement, in order for a final decision to be made in November Netflix quarterly results show yet another rise in new subscribers, signing up 6.96 million customers in this quarter, totaling a global amount of 137.1 million Canada becomes the second country to legalise the use of Cannabis and Marijuana Spot Gold market trend starts to incline, breaking out of its previous month’s bearish position above $1210 to $1219. IMF had arranged to attend a conference in the Middle East for October 23rd to 25th, however has now postponed the trip with no further explanation given China’s holdings of US Treasury securities declined yet again for a third month, plummeting its holdings by around $6billion to $1.165trillion in comparison to last years at $1.2trillion US stocks rise rapidly as some of the largest US companies announced strong quarterly results, helping regain the downward fall shown last week. This includes the Dow Jones, which surged around 550 points/2.2% and the S&P increasing by over 1.9% Asian overnight: Asia Pacific markets managed to follow the US and European lead overnight, with Japanese and Australian markets in particular leading the way higher. Interestingly, Chinese and Hong Kong markets were relatively muted, highlighting the continued fears surrounding growth in the region after Trump threatened yet another round of tariffs on Sunday. The level of debt to GDP in China has hit ‘alarming levels’, as a great difference is seen between reported investments and actual off-balance sheet debt. It is reported at estimates of highs of 30 trillion to 40 trillion Yuan ($4.34trillion to $5.78 trillion). According to analysts, this is mainly caused due to local Chinese governments investing deeply in infrastructure and funding in order to encourage economic growth UK, US and Europe: The UK is back in focus today, with inflation data likely to build upon yesterday’s jobs numbers to build a picture of the pressures on the BoE. With average earnings on the rise, the predicted fall in inflation could actually provide a positive differential between wages and the cost of living, thus raising real wages. UK wages grow at their quickest pace in nearly 10 years. The level of pay rose by 3.1% from the three months prior to August and a fall of 47,000 to 1.36million in unemployment levels.The EU summit will shift the market mindset back to Brexit, with the EU having allowed Theresa May the opportunity to find a solution to break the deadlock. In the US, keep an eye out for housing data, with building permits and housing starts being released. However, the big release comes later on, with the Fed due to release their latest monetary policy minutes. Crude traders will also be keeping a keen eye on the Crude inventories data following substantial build-ups over the past two weeks. The Fed to release their latest monetary policy minutes later today Results from further investigation, in regards to the Saudi journalist Jamal Khashoggi, may show greater strain on how the US and Saudi Arabian relationship will be effected. This has caused three large banks including HSBC, Credit Suisse and Standard Chartered to pull out of Saudi’s Future Investment Initiative event in Riyadh. Among these, Google’s cloud division, Mastercard, JP Morgan and many others have also decided that they are not attending the event. South Africa: Upbeat US corporate earnings is seeing the tech sector leading gains in the worlds largest economy (the US). The dollar has however firmed up a bit, putting some pressure on commodity prices and the rand. BHP Billiton is down 0.7% in Australia, suggestive of a softer start for local diversified resource counters. Naspers, which has roughly a 20% weighting in the Top40 Index, is expected to open higher this morning in lieu of the improved sentiment surrounding tech sector stocks. Our local market will look to Retail Sales data at 1pm today for for guidance as to the health of South Africa's retail sector. Economic calendar - key events and forecast (times in BST) Source: Daily FX Economic Calendar 9.30am - UK CPI (September): CPI to rise 2.4% YoY and 0.5% MoM, from 2.7% and 0.7%, while core CPI rises 1.8% YoY and 2.1%. Market to watch: GBP crosses 10am – eurozone CPI (September): forecast to rise 0.2% MoM. Market to watch: EUR crosses 1.30pm – US housing starts & building permits (September): starts expected to fall by 3.5% YoY, and permits to rise 1.2%. Market to watch: USD crosses 3.30pm – US EIA crude inventories (w/e 12 October): forecast to see a 1 million barrel rise in inventories. Markets to watch: Brent, WTI 7pm – US FOMC minutes: the committee’s decision to raise rates will be revealed in more detail, providing volatility for the US dollar and equities. Markets to watch: US indices, USD crosses Corporate News, Upgrades and Downgrades Afrimat expects earnings per share and headline earnings per share, for the interim period to be between 92 cents and 97 cents per share (2017: EPS of 102.4 cents per share and HEPS of 102.2 cents per share), reflecting a decrease of between 5% and 11% on the previous period. Pearson said revenue was flat for the first nine months of the year, and the firm has reiterated its annual profit guidance. Barratt Developments has made a strong start to the year, with a 12.4% rise in forward sales, to £3.15 billion compared to £2.8 billion a year earlier. Mediclinic said that first-half revenue fell 1% to £1.4 billion, while adjusted EBITDA was down 8% to £21 million. Lyft has hired JP Morgan to lead its IPO for 2019, potentially increasing its value to over $15billion BlackRock’s stock falls by over 5% due to their third-quarter revenue results falling below expected results, totalling at $3.576billion in comparison to $3.648billion. Nevertheless, BlackRock published earnings per share at $7.52, in comparison to an expectation of $6.84 Audi to be fined £700million/$800million as an investigation occurred in relation to a diesel emission scandal Morgan Stanley increased more than 5% after the announcement of improved results in earnings. This led to earnings per share at $1.17 rather than the forecasted results of $1.01 Goldman Sachs had reached a higher level than estimates in profitability levels, resulting in $8.65billion of revenue from an estimated $8.4billion. This results in levels of $6.28 per share in earnings, from its estimates of $5.38. Volvo shares decline by 5% due to an announcement explaining potential emissions failure, with vehicles emitting illegal levels of nitrogen oxide Dollar Tree’s stock increased to highs of 7.1% after investor Carl Icahn had taken a stake in the company Uber targeting $120billion valuation for next year, as Wall Street banks advise that its worth more than three times the automaker Ford IBM revenue decline to $18.8billion in the third quarter, falling by 2.1% against expected results Shares of Tencent faces an extreme decline of 40% from January, eliminating more than $230billion in market value BillerudKorsnas upgraded to buy at SEB Equities Coca-Cola HBC raised to hold at Wood & Company Hellenic Petroleum raised to overweight at Pantelakis KPN upgraded to overweight at Barclays ConvaTec cut to underperform at Credit Suisse Handelsbanken downgraded to sell at DNB Markets Michelin downgraded to neutral at Goldman Safran downgraded to underperform at Jefferies IGTV featured video Information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
  7. Chinese stocks decline and the renminbi devalued overnight, despite the PBoC reducing requirements for capital reserves. China's central bank to cut down Reserve Requirement Ratio, releasing 1.2tn Yuan in liquidity, and putting 750bn Yuan ($109bn or £83bn) in cash into the financial system. CSI300 down 3.7%. The Australian ASX also saw sell offs moving the mining and finance centric index down 1.2%. US employment figures out on Friday caused a flurry of Treasury sell offs, however the coming weeks agenda is likely to remain dominated by bond market news. Brazilian Presidential Candidate Jair Bolsonaro wins first round of votes with 46% to Fernando Haddad with 29%. The second vote to be held on the 28th October. Oil drops as US considers granting some waivers on Iran crude sanctions. LME Week kicks off on the 08/10/2018 Spot gold was down 0.2% at $1,200.31 an ounce, with US gold futures falling 0.1% to $1,204.40 an ounce Cryptocurrencies continue their range bound movements, with bitcoin priced at $6550 and ether maintaining $225 Schroders in talks with Lloyds for wealth sector collaboration, with Lloyds putting £13bn into the new joint venture. Asian overnight: Chinese markets were the big mover over the weekend, with a decision from the PBoC to cut the reserve requirement ratios for banks driving the Shanghai and Shenzhen composite markets roughly 3% lower. This should raise the amount of free cash flowing around the economy, yet also highlights that the government expects to see further economic impact from the ongoing trade war with the US. We also saw losses in Australian and Hong Kong markets, with Japan closed due to a national holiday. UK, US and Europe: Looking ahead, it looks like a relatively stable start to the week, with holidays in the US and Canada meaning that volumes are likely to be relatively low. The one notable event from Europe has already occurred, with German industrial production falling unexpectedly to -0.3%, from -1.3%. Copper, a bellwether metal for global growth and a strong economy, has seen a 14% sell off whilst zinc sits at an even more significant 22%. LME Week kicks off today, with the exchange hosting a number of events for representatives of the supply side chain to discuss macro events and trends. Today sees a host of high profile speakers and an interactive discussion panel look at market trends and issues facing the metal industry today. It comes at an interesting time for the commodities industry as metal markets have been whipsawed by trade war tensions, an emerging markets sell off, and a strengthening US dollar. Copper, a bellwether metal for global growth and a strong economy, has seen a 14% sell off whilst zinc sits at an even more significant 22%. Those who are bullish on the broader asset class will be hoping the market focuses once more on true supply and demand fundamentals, agreement for which are still heavily weighted on the ‘strong demand’ side, rather than the political uncertainty. BMO Capital Markets stated “We have seen such disconnects before; [between fundamentals and price] however, they have tended to last only a few weeks. The current example has lasted several months, and every time it looks as though the macro headwinds have blown themselves out, they return once more.” South Africa: The dollar is firmer, commodity prices trade lower and the rand is weaker this morning. BHP Billiton is trading 2.8% lower, suggestive of an initial decline for locally listed resource counters. Tencent Holdings is down 1.3% in Asia, suggestive of a weak start for major holding company Naspers. Economic calendar - key events and forecast (times in BST) Source: Daily FX Economic Calendar Corporate News, Upgrades and Downgrades Schroders has confirmed that it has been in discussions regarding a possible merger with Lloyds Banking Group. No further details were provided. Dechra Pharmaceuticals has said that it has acquired Caledonian Holdings for £4.4 million. Daily Mirror and Daily Star publisher Reach reported a 7% drop in like-for-like revenues for the third quarter, although revenue rose 21% overall. 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