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.
Higher start to the week before UK GDP

The risk-off trade came back with vengeance in the previous week, as trade concerns and global growth fears returned to haunt traders. More central banks turned dovish, alarming traders; growth forecasts were downwardly revised across Europe and fears that a trade deal will not be agreed increased. Global stocks experienced the worst week of the year so far, oil tumbled and flows into safe havens were on the up.

We could expect to see more volatility this week as China returns from its week-long celebration of the Lunar New Year on top of plenty of data to watch, including growth figures from Germany. Brexit will remain in focus as Theresa May returns from Brussels as good as empty handed to face a vote in Parliament on Thursday. Funding for the US government runs out on Friday February 15. The collapse of talks over the weekend between US Democrats and Republican lawmakers have raised fears that another US government shutdown could be on us in days. Trade will also stay central stage as Steve Mnuchin and trade negotiator Robert Lighthizer are headed to Beijing for another round of trade talks.

Oil dives over 1% on increased US output

Asian markets were mixed in trade overnight as traders have plenty to be nervous about looking out across the week. Oil tumbled in early trade with WTI down over 1% and Brent not far behind shedding 0.8%. In addition to concerns over future demand, given the global growth slowdown, traders were also digesting increased supply figures. The number of US oil rigs operating increased for a second time in three weeks, according to the Baker Hughes rig count report. With 7 new rigs added the total hit 854. This points to a further increase in US production which is already at a  record  level.

UK GDP to push GBP sub $1.29?

The pound has had a tough run of late, dropping for a second straight week. We can expect more volatility across this week with high impacting data in the form of GDP and CPI readings, in addition to another Brexit vote in Parliament on Thursday.

Kicking off with UK GDP this morning, the expectation is for economic growth to have completely stalled quarter on quarter. This comes just days after the BoE downwardly revised economic growth for the UK to just 1.2% across this year. The pound is trading lower early on Monday ahead of the data and we could see it move below $1.29 in the case of a surprise to the downside.

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.

16-7-2019

Nasdaq hits record, eyes on US earnings
Both stocks and bonds extend rally in the US, as the earnings season kicks off.Monday was Nasdaq’s turn to hit a record high, as technology stocks led gains in the US session. The S&P500 consolidated near its historical high as well, though energy (-0.93%)… Read more

15-7-2019

US earnings in focus, as China slows
The week started with undecided risk sentiment on mixed Chinese data.Chinese equities began the week on a negative note, after the data showed that China’s GDP grew 1.6% in the second quarter, a touch better than 1.5% penciled in by analysts and up from 1.4% p… Read more

12-7-2019

Dow at record, oil up on Hurricane Barry
The US stocks went to the moon and back as the Federal Reserve (Fed) Governor Jerome Powell strongly hinted that an interest rate cut is imminent at his semiannual testimony before the congress. The global economic slowdown outweighs the good data in the US, a… Read more

11-7-2019

Powell spurs bets of 50bp cut in July
The US dollar gave back gains on a sharp move after the Federal Reserve (Fed) Governor Jerome Powell has been very clear that the global economic slowdown outweighs the encouraging data in the US at his speech before the congress on Wednesday. Powell’s testimo… Read more

10-7-2019

UK won’t suspend Parliament, GBP down
The US dollar consolidates gains as Federal Reserve (Fed) Governor Jerome Powell prepares to deliver his semiannual testimony before the House Financial Community at 10am today and he is expected to keep the possibility of an interest rate cut on the table des… Read more

9-7-2019

Stocks fall ahead of Powell’s testimony
Markets trade on a mixed risk sentiment.The US dollar extended gains against most G10 currencies, as investors scaled down their dovish Federal Reserve (Fed) expectations following a solid US jobs report in June. The US equities edged lower and the futures ext… Read more

8-7-2019

USD jumps on solid jobs data, lira falls
The US dollar rallied and the 10-year yield jumped to 2.0390%, as the solid US jobs report released the dovish pressure on the Federal Reserve (Fed) on Friday. Data showed that the US economy added 224’000 nonfarm jobs in June, well above the 160’000 expected … Read more

5-7-2019

Markets calm before the US NFP data
European equity markets were flat on Thursday, the US was closed for the Independence Day and the Asian markets opened sideways on Friday on lack of indication from overnight.The US equity futures edged slightly higher, but the FTSE and DAX futures remained mu… Read more