Our analysts have their fingers on the pulse of the world's financial market news.
The FTSE surged to 7062p at the open in London. All sectors opened in the green, following a positive close in the Asian markets.
Yet, the high volatility in the global equity markets hint that the post-Deutsche panic may not be over. Although we have seen an aggressive rally in most of the FTSE sectors at the open, a part of these gains could be short-lived.
The UK’s financials (+1.37%) are better bid this morning, in contradiction with the new perspective posterior to the UK PM May’s announcement that the City of London will not benefit from any favour during the Brexit procedures. London Stock Exchange (-0.52%) diverges negatively on concerns that a significant part of the financial business could leave the UK. Citi Bank’s UK Head warned that jobs in London’s financial sector would move to European Union countries ‘regardless of what deal is struck on access to the EU financial services market’.
Industrials and energy stocks are top performers.
Royal Dutch Shell (+2.98%) and British Petrol (+1.13%) rank among the best performers on a sweet combination of a significant depreciation of the pound and the strengthening positive trend in oil, giving signs of a sustainable recovery posterior to the latest OPEC agreement to cut production.
Randgold Resources (-0.64%) and Fresnillo (-0.22%) are under pressure as gold traded below its 100-day moving average ($1310) for the first time since June. Whether or not the price of an ounce could break the $1300 support depends on US dollar appetite heading into Wednesday’s ADP report, and Friday’s nonfarm payrolls in the US.
Aussie holds support as RBA maintains status quo
As expected, the Reserve Bank of Australia (RBA) maintained its cash rate unchanged at Lowe’s first meeting as central bank governor. The AUD held support after the verdict, as the Australian sovereign bonds pared losses.
From a technical perspective, the golden cross formation (50-hour moving average crossing above the 200-hour moving average) could encourage an extension of gains towards 0.7730 (Sep 8th resistance), though the downside risks prevail as the global risk appetite is fragile. Buyers are eyed at 0.7649/0.7650 (minor 23.6% retracement on Sep 15th to Sep 29th rise & 200-hour moving average), before 0.7612 (major 38.2% retrace).
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
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