CFDs and spread bets are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% 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.

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.
ECB taper talk this week?

Macron no knight in shining armour

Excitement over the success of Emmanuel Macron (or rather the failure of Marine Le Pen) in the first round of the French elections died down on Tuesday. The CAC held Monday’s gains and French yield spreads over Germany continue to tighten to reflect the greater European political certainty.

 

A Macron presidency avoids the immediate threat of Frexit but he is unlikely to be France’s knight in shining armour. Without an established party behind him, Macron may find victory in parliamentary elections in June harder to come by. Without enough seats in the National Assembly structural reforms needed to put France’s economy in a position for long term sustainable growth will be as hard to come by for Macron as they were for Hollande. Still, the implementation of economic reform is probably more an issue for France than a headwind to global markets.

 

A dip-buyer’s market

The dip-buying frenzy that now happens after every geopolitical shock is seeing some profit-taking. It’s quite amazing to behold the same dip-buying strategy applied whether the geopolitical shock happens (Brexit, Trump) or it doesn’t (French election). Even if there had been a Le Pen - Melenchon final round, markets probably would have bought the dip anyway. The ECB would have been there to limit the damage with extra liquidity.

 

Whitbread earnings Costa FTSE some gains

The FTSE 100 received an afternoon boost from a positive open on Wall Street. Bank and insurance shares as well as the US-orientated Ashtead Group were amongst the top risers while Costa-coffee owner Whitbread was a drag. Whitbread’s warning of a tougher consumer environment hit a nerve and its shares got punished. Data shows the post-Brexit spending spree has noticeably slowed in the first quarter so the warning was heeded by investors despite Whitbread results that beat expectations.

 

CAT: He was a beautiful butterfly!

After years of disappointment, Caterpillar earnings sprung to life. Caterpillar cut its 2017 guidance but it crushed first quarter profit expectations so investors are encouraged by the recovery story.  CAT is known as a bellwether for global growth so for it to beat expectations so convincingly was a green light for investors. Caterpillar’s business was heavily impacted by the oil and mining industry slump but shares have been rising on the hopes of an infrastructure spending boom in the States under President Donald Trump.

 

ECB taper talk this week?

Chatter that Macron entering the final round of the French election has eased fears amongst central bankers and may lead to a ‘tweak’ in the ECB’s policy language sent EURUSD spiking back above 1.09. The comment came from anonymous sources but is in line with our long-held view that above-target Eurozone inflation necessitates the discussion of tapering much earlier than previous guidance. Were the ECB to actually signal an earlier than expected end to its asset purchase program at its policy meeting on Thursday, the euro could be in for its biggest two-week gain in years.

 

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. Losses can exceed deposits.

14-12-2020

GBP jumps on Brexit talks extension
The British pound has jumped in early trading this week after the UK Prime Minister and EU Commission President agreed to extend Brexit talks beyond Sunday. MARKETSThe S&P 500 fell on Friday, wrapping up a losing week, as the outlook for additional fiscal… Read more

10-12-2020

AirBnB IPO today
At its IPO price of $6 per share, Airbnb ABNB, is expected to raise at least $3.5 billion with an initial market capitalization topping $40 billion. MARKETSStocks fell on Wednesday, retreating from the record highs set earlier in the day, as tech shares strug… Read more

9-12-2020

S&P 500 closes over 3,700
MARKETSThe S&P 500 closed above 3,700 for the first time ever on Tuesday as Pfizer started to roll out its coronavirus vaccine in the U.K., lifting hope of the economy recovering in the near future. The Dow Jones gained 0.4% while the Nasdaq Composite clim… Read more

8-12-2020

Global stock market cap reaches $100 trillion for 1st time
The value of all the stocks in the world put together has reached a giant $100 trillion for the first time. MARKETSThe Dow fell 0.69% Monday, led by Intel and broad-based weakness in value stocks as rising Covid-19 restrictions offset optimism over an imminen… Read more

4-12-2020

Pfizer vaccine supply chain problems
MARKETS The S&P 500 fell slightly from record high. Major U.S stocks indices cut gains quickly in the final hour of trading after Dow Jones reported Pfizer now expects to ship half of the doses it had previously planned this year after finding raw materia… Read more

2-12-2020

Dollar Purge Continues
The US dollar dropped to fresh two-and-a-half year lows on Tuesday, with EUR/USD rising above the widely-watched 1.20 handle. MARKETSNews• Stocks in Asia-Pacific were mixed in Wednesday morning trade after major indexes on Wall Street surged to record highs o… Read more

1-12-2020

Bitcoin hits record high
The price of Bitcoin climbed 8.7% on Monday to reach a fresh record high of $19,857.03 - overtaking its previous peak made in 2017. MARKETSNews• Asia stocks rise as the Caixin/Markit manufacturing Purchasing Managers’ Index for November came in at 54.9 — its… Read more

30-11-2020

OPEC meeting starts
Today OPEC+ begin a 2-day meeting to decide whether to begin producing an extra 2 million barrels per day of oil, or delay for another 3-6 months. MARKETSNews• Asia-Pacific markets are mixed this morning while S&P 500 futures are down half a per cent. Ind… Read more