Financial market research and analysis

Our analysts have their fingers on the pulse of the world's financial market news.

CFD trading is high risk and may not be suitable for everyone.
Risk Appetite Rebounds Lifting Wall Street, Euro & EM’s

A combination of bullish earnings from Walmart, the continued strengthening of the Turkish Lira and new trade talks between China and the US boosted Wall Street overnight. The Dow posted its biggest one-day gain in months as investors put risk back on the table.

The Dow finished almost 400 points higher, the S&P rallied 0.8% taking it back within sight of January’s record high and the Nasdaq increased 0.4% taking it closer to its own record high.

 

US – Chinese Trade Talks to Begin Again

News that a trade delegation from China will visit Washington for trade talks boosted sentiment. This will be the first set of trade talks since an apparent deal fell apart months ago. However, the impact could be short-lived, given that there are no senior officials involved., demonstrating that China is not convinced that any serious progress is expected from these talks. So, whilst this could look like a step in the right direction, low-level officials are unlikely to resolve this ongoing trade dispute.

Whilst the Chinese equity market was rather unimpressed when the news broke on Thursday, falling 0.6% lower to just shy of its recent 2 ½ year low; it recovered on Friday, helped also by increased flows into Emerging Markets amid the continued recovery of the Turkish Lira.

 

Lira Continues to Rebound

The Lira staging a recovery of almost 25% since its nadir of 7.24 hit on Monday, despite the US announcing further sanctions has boosted confidence in EM currencies. With Qatar propping up Turkey to the tune of $15 billion, market fears over the crisis in Turkey and contagion to European banks have eased considerably. As risk on sentiment prevails the euro has picked itself up off 13-month lows with euro traders now looking ahead to inflation data due this morning.

 

Pound Struggles on Brexit Fears

The pound has not been able to capitalise so convincingly on the softer dollar, as Brexit fears keep the pressure on sterling. Despite reasonable data over the past few days, with inflation ticking higher and retail sales booming the pound is still down 0.4% across the week. This is because even data showing that the UK economy is relatively healthy has failed to distract traders' attention away from Brexit fears, as negotiations are once again in full swing. Traders will be watching keenly for any headlines indicating the likelihood of the UK crashing out of Europe without a deal. Rating agencies, which had previously considered an orderly Brexit as the base case scenario are no longer willing to do so, highlighting the extent of the risk the UK now faces.


The information and comments provided herein under no circumstances are to be considered an offer or solicitation to invest and nothing herein should be construed as investment advice. The information provided is believed to be accurate at the date the information is produced. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please note that 79 % of our retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing money.

The information and comments provided herein under no circumstances are to be considered an offer or solicitation to invest and nothing herein should be construed as investment advice. The information provided is believed to be accurate at the date the information is produced. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please note that 79 % of our retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing money.

21-5-2019

Nasdaq with US tech sector plummet on Huawei decision
Wall Street closed lower as the fallout from Huawei dragged down tech stocks. The Nasdaq plummeted 1.7% on Monday as the crackdown on China’s largest telecommunications and electronic equipment maker pressured the US technology sector. US chip makers tumbled a… Read more

20-5-2019

Oil jumps as OPEC signals intention to maintain cuts
Markets Mixed As Google Suspends Business with Huawei Asian markets put in a mixed performance overnight as investors paused, waiting for new developments in the US – China trade dispute. This comes after a week of escalating tensions between the two powers. … Read more

17-5-2019

Pound below $1.28 as Theresa May prepares to leave
Wall Street closed higher for a third straight session overnight as solid economic data and robust earnings from the likes of Cisco and Walmart boosted sentiment. Investors put US China trade dispute anxieties behind them and continued to jump back into equiti… Read more

16-5-2019

Trump's Visible Hand Drives Markets
The Dow and the broader US market extended the relief rally on Wednesday amid easing trade tensions. News that Trump would restart trade talks with China boosted optimism that the two powers could avoid a prolonged, economically damaging trade war. But it woul… Read more

15-5-2019

Stocks Rebound with Chinese Stimulus Hopes
Asian markets followed Wall Street higher overnight as trade war fears eased. Markets across Asia rebounded from 3 ½ month lows on a softening of stance from Trump and amid growing expectations of further stimulus from the Chinese government. Despite the advan… Read more

14-5-2019

Worst Day on Wall Street Since Jan 3
Wall Street closed deeply in the red on Monday. The Dow shed over 600 points and the S&P dumped 2.5% in the worst trading day since 3rd January. Investors rushed to take risk off the table as China raised tariffs on US imports, a retaliatory measure to the… Read more

13-5-2019

Futures Plummet As Investors Eye Trade Dispute Impasse
As we head into the new week, trade tensions will remain a key focal point for the markets and risk sentiment. In the UK specifically, Brexit and Theresa May’s ability to cling to power ahead of next week’s European elections will be an important driver of dom… Read more

10-5-2019

Yield Curve Inverts But "Beautiful Letter" Keeps Deal Hope Alive Despite Tariff Increase
Global equity markets were mixed as investors digested the latest headlines from the US – China trade talks. Asian markets pared earlier gains, European bourses are pointing to a stronger open, whilst US futures head south. The mixed response from the market r… Read more
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.