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Asian stock markets ended the week on a positive note as the FTSE gained more than 1% at the open. All industry groups kicked-off in the positive territory in London. Energy companies are leading the rally on stocks with WTI consolidating at six-month highs. The fact that the $50 a barrel is just around the corner is fuelling the energy stocks at the last trading session of this week. Royal Dutch Shell (+2.00%) and BP (+1.62%) are among the top performers of the day.
The USDJPY consolidates above the 110 level as the improved risk sentiment keeps traders in a buy-the-dip trend hinting at further gains toward 110.50/111.00. However, there are talks that the G7 meeting may put some pressure on the Bank of Japan (BoJ) as leaders are known to show no sympathy regarding the BoJ’s monetary policy having a significant impact on the yen's value. Therefore, traders should consider the event risk as G7 financial ministers and central bankers meet in Japan today.
The recent USD rally didn’t prevent foreign central banks from increasing their US debt holdings by $254 million to $3.219 trillion over the week to May 18th. The US dollar is softer this Friday as traders try to price in the mixed messages from members of the Fed. New York Fed President William Dudley said there will definitely be a live meeting in June in an effort to keep the possibility of a Fed rate hike alive, although he highlighted the Brexit as a ‘variable in the mix of possibility’ for a June rate hike. The recent hawkishness regarding the Fed seems rather fragile given that there are important caveats to this very doubted Fed rate hike.
Minutes of the ECB's policy meeting in April showed rate setters agreed they needed to defend the bank against a growing number of critics. As the efficiency of monetary measures are increasingly questioned, the dollar strength helped the EURUSD trade below the 1.12 mark for the first time in three weeks. Trend and momentum indicators suggest there is further downside potential and the 1.10 mark against the US dollar could soon be brought back on the table, if USD-bulls continue to lead the game.
Political turmoil in Washington combined with growing trade tensions sent Wall Street sharply lower overnight. A rumoured resignation from Attorney General Rod Rosenstein, plus US and Chinese trade tariffs kicking in and dampening hope of further trade negotia…Read more
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
Despite a shaky end to trading on Wall Street overnight, which saw the Dow gain 0.6%, the S&P just 0.1% and the Nasdaq slip by the same, Asian markets moved broadly higher on improved sentiment. European bourses are taking the lead from the US over Asia, w…Read more
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