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Investors turn to cash on lack of further progress in US-China talk
Alibaba beats its own record by more than 26%

If the Singles’ Day sales are a gauge of the Chinese consumer health, then the Chinese consumers are doing just fine. E-sales on Alibaba’s platform hit a new worldwide record with $38 billion worth of sales during the 11.11, easily beating its very own $30 billion record achieved last November.

Some say that Chinese paid tribute to Alibaba’s iconic Jack Ma who has just retired, while others believe that a part of the sales boost came from promotions that went beyond reasonable. Either way the outcome is clear: China remains the world’s most exciting consumer market for the retail business with or without a trade war hanging on its shoulders, a market beyond the scale.

Now back to earth. The Chinese economic data hasn’t been as encouraging as Alibaba sales. New loans in China dropped to 661 billion yuan in October, versus 1690 billion yuan printed a month earlier, and meaningfully lower than 800 billion yuan expected by analysts. Sharp drop in new loans, combined with the factory-gate deflation hint that the Chinese economy is sputtering due to the ongoing trade tensions with the US. Investors seek clarity on where and when the US and Chinese officials will meet to cement a partial deal to wind down a part of their mutual tariffs to give a much-needed relief to the market.


Investors turn to cash

Asian equities took over a flat-to-negative market on Tuesday, following a trading session painted in red both in European and US equity markets. But that capital didn’t flow into the sovereign bond markets, nor into gold.

Investors continued winding down their sovereign bond holdings. European government bond yields extended their advance to highest levels in the last three to four months. The US 10-year yield opened above 1.90% mark following Monday’s Veterans Day break.

Gold shortly dived below the $1450-support an ounce. Improved sovereign yields should apply some additional pressure on gold demand. Resistance is eyed near the 100-day moving average, $1477.

Meanwhile, the US dollar edged higher against most G10 currencies in Asia, except the British pound.

The big picture hints that investors are turning into cash as they await concrete details from US-China trade talks.


‘Unilateral’ coalition for a sure Brexit

Brexit Party’s Nigel Farage sent the pound rallying on Monday, as he announced he won’t fight Boris Johnson’s Conservatives in the upcoming general election. Farage’s stand down boosted Johnson’s chances of winning the December snap election and lowered the possibility of a renewed Brexit referendum and more political uncertainties that would come along with a Labour victory.

Cable tested the 1.29 resistance and consolidated gains above 1.2850 in Asia. The golden cross formation on the hourly chart, where the 50-hour moving average crossed above the 200-hour moving average, could lend some support to the pound. But the topside will likely remain limited before Wednesday’s inflation data, which should confirm a further slowdown in the headline figure and could revive the Bank of England (BoE) doves following the unexpected dovish shift at the heart of the MPC at last week’s monetary policy meeting.

Due today, the employment figures will likely be no surprise.

The FTSE 100 closed 0.42% down on Monday, as mining stocks (-1.95%) led losses after the Chinese producer price deflation revived worries of further economic slowdown.

Brent crude consolidated near $62 a barrel on hope that OPEC and its allies will announce further production cuts at next month’s meeting, but energy stocks will likely remain under the pressure of rising worries about a further wind down in Chinese demand.

Fresnillo and Anglo American shred more than 2.50%, as gold tested the $1450-support on Monday. Falling gold prices should continue taking shine off the goldminers.

9-12-2019

A holding pattern before big week
MARKET WRAP: A holding pattern before big week Indices Friday’s blowout US jobs report kept Asian stock market sentiment upbeat at the start of the new week.  In Europe, indices are down as investors strap in for what promises to be a busy week. There are tw… Read more

6-12-2019

China waives tariffs, NFP preview & Uber safety
European shares have opened stronger on Friday before the release of US monthly employment figures. That follows a generally upbeat session in Asia. Similarly LCG pricing points to a higher start on Wall Street. The British pound is hovering at 2-year highs ag… Read more

5-12-2019

OPEC meeting begins
European shares started trading on Thursday with a softer tone while LCG pricing points to a positive open on Wall Street, that follows a positive session in Asia. The British pound is extending gains beyond 1.31 in a backdrop of broader dollar strength. Gold … Read more

4-12-2019

No phase one? PMI green shoots wilt, NATO, GBP 7-month high & Alphabet
Shares in Europe opened higher on Wednesday, that follows a rocky session in Asia, while Wall Street is pointing to a firmer start. Safe haven currencies including the Japanese yen and Swiss franc have been making gains. Gold has joined in on the safe haven fl… Read more

3-12-2019

Steel Tariffs & Wall Street drops, Christine Lagarde & EURUSD holding 1.10
Shares in Europe are on course for a positive start with LCG pricing indicating a higher open on Wall Street. The dollar is up slightly after falling yesterday. Gold remains in a tight range while oil is rising for a second day.Wall Street drops after steel ta… Read more

2-12-2019

Chinese manufacturing rebound, Trade deal stalled & Ted Baker
European shares opened higher on Monday with LCG prices pointing to a higher open on Wall Street. The dollar and the British pound are slightly firmer. Gold is softer and oil is off the lows of Friday’s big sell-off. Surprise pickup in Chinese & European … Read more

29-11-2019

Muted volumes, Black Friday, Amazon & Ocado
European markets have opened slightly lower on Friday while futures point to little change on Wall Street for a half-day trading session after Thanksgiving. Currency and commodity markets are flat. Muted trading volumes around Thanksgiving and some fatigue fr… Read more

27-11-2019

Trade optimism, FTSE 2-month high, Corbyn’s crash interview
European markets have opened higher on Wednesday. Asian markets were mostly positive with China the exception to the rule. Wall Street is set to open on a positive note later. Oil prices are positive on Wednesday while gold is on the backfoot. Trade optimism … Read more