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Nothing could persuade investors from rushing back to the global stock markets. Although the enthusiasm in global equities is hindered in Europe, we could say that overall, the Fed hangover remained short lived.
Nikkei (+0.66%) and Topix (+0.52%) closed the week in the green, as depreciation in the yen boosted demand for Japanese exporters. The US dollar is set to reconquer the 120 level against the yen and there is no particular reason to stop the Nikkei from rising towards the 20’000 handle.
The FTSE opened flat. Appetite above 7000 pence appears to be limited, yet not inexistent. The boost from mining (+0.24%) and energy stocks (+0.33%) was mitigated by the fall in technology stocks (-1.93%) at the open. Yet the cheaper pound and the recovery in oil prices could give a hand to the bulls and clear the way for a positive close.
Randgold Resources (+1.10%) and Fresnillo (unch.) hold on to their losses, after being severely squeezed by the hawkish rhetoric from the Federal Reserve (Fed). Fresnillo tanked as much as 8.60% on December 15th, while Randgold lost 5.9% on the same day. The downside risks prevail as firmer US yields and the broad-based demand in the US dollar continue to weigh on gold prices. The price of an ounce tanked to $1126 in Asia.
We note that although the lack of appetite in gold could encourage a further extension of the sell-off to $1100/1080 area, higher inflation expectations will at some point resuscitate interest in gold for hedging purposes.
US equity futures traded higher in Asia. Although European traders are lacking conviction today, the US markets are called to be higher at the open. The Dow has gathered enough momentum since Donald Trump’s election as the next US president. The 20000 level is wetting many stock investors’ appetite and there is no major barrier to stop them from taking the Dow to the next level.
The Dow could start the day 13 points higher at 19865. The S&P500 is expected flat at the US open.
European markets look set to turn lower at the start of trading on Monday. The new US and Chinese tariffs take effect today so traders in Asia and Europe look cautious. Both continents are more exposed to global trade than the US. For markets, the new tariffs …Read more
Whilst risk sentiment has been healthy across the week, this swelling optimism boosted US stock markets to an all-time high overnight. A rally in tech stocks, which have done a lot of lifting for the indices over the year, in addition to fading concerns over U…Read more
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Asian markets took the lead from Wall Street overnight, rallying as the latest tit for tat measures in the escalating trade spat have not been quite as severe as the markets had been expecting. Tech stocks were also heavily in demand, bouncing back after steep…Read more
Traders are faced with a sea of red in risk-off trading as markets are set to open on Tuesday. Despite the fact the market has been expecting an escalation in trade tensions between the world’s two largest economies with further tariffs from Trump; the reality…Read more
Escalating trade tensions will once again be a central theme to driving sentiment and trading this week, with President Trump widely expected to levy tariffs on a further $200 billion worth of Chinese imports, potentially as soon as today. The elevated trade c…Read more
European bourses are set to take the lead from a positive session on Wall Street and Asia overnight. A drive higher from tech stocks on Wall Street helped lift Asian equities after their recent battering, pulling them off 2-year lows.
Asian markets were endin…Read more
Today will be a busy day for traders with 2 central bank rate decisions and US inflation data all due for release within a few hours of each other. The BoE monetary policy announcement will kick things off, followed shortly after by the ECB rate announcement a…Read more