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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. The latest headlines over the weekend indicate that Trump could be softening his stance slightly after he removed tariffs on Canadian steel and aluminium. However, US top tech companies starting to cut off vital Huawei supplies as they comply with the Trump administrations crackdown risks stoking tensions between the US and China further.

Another volatile week ahead?

Market volatility continues to stem from announcements and interpretations of what is going on in trade disputes between the US and its trading partners, but principally China. Whilst the latest headlines over Canada are supportive of sentiment, a news bite which increases risk aversion could be just around the corner. Investors know this and are on edge right now. That won’t change overnight. China are unlikely to take Google’s suspension of business with Huawei lying down.

A slew of US data across the week and the minutes from the Fed’s latest policy meeting will provide clues as to the robustness of the US economy. It is too soon to see any impact of the escalation of the trade war on data, which explains why investors are reacting so strongly to headlines. Strong data and risk-hitting headlines could ensure a volatile week for stocks and the dollar alike.

Australian stocks outperformed and the Aussie dollar popped higher after the centre-right Liberal National Party pulled off a shock election win in federal elections, beating the Australian Labour party. The results underpinned a firmer session across most of Asia, although stocks in China and Hong Kong fell.

Oil jumps 1.3%

Oil is rallying strongly in early trade on Monday after OPEC signalled its intentions to maintain production cuts for the rest for the year. Oil has already rallied around 40% since the start of the year, thanks mainly to OPEC limiting supply. Investors had been growing nervous that OPEC could look to remove the production limits at its next meeting in June, in light of tightening global supply and elevated prices. Whilst the OPEC production cuts have offered significant support to oil prices, US sanctions on Iran and Venezuela have also played a role. Add into the equation rising middle eastern tensions, as Iran retaliates to US measures and oil looks well supported at these levels.

13-9-2019

Global equities rally, Eurozone yields converge after ECB delivers disputed stimulus
Asian equities gained after the European and US markets closed in the green, as the European Central Bank (ECB) delivered more stimulus to boost inflation and Trump administration hinted at an interim trade deal with China to ease tensions before the next face… Read more

12-9-2019

Euro tests $1.10 but ECB doves could be hard to satisfy
The European Central Bank (ECB) meeting is what matters the most to worldwide traders today. The ECB is expected to take monetary action at today’s meeting to give a boost to the depressed Euro zone economy as a result of the rising global trade tensions, slow… Read more

11-9-2019

Downside correction in sovereign bonds continues ahead of ECB, Fed meetings
Asian equities mostly gained on Wednesday, but stocks in mainland China remained on the back foot despite the Chinese government’s dismissal of quotas and approvals for foreign investors. The latter move was interpreted as a sign of desperation and an increase… Read more

10-9-2019

Sovereign bond sell-off hit sentiment, gold dives below $1500
A global sovereign bond sell-off sent the US 10-year yield to two-week highs.The 10-year German bund yield eased to -0.585% from above -0.70% at the beginning of this month. The euro held ground above 1.10 against the greenback, but the topside remained limite… Read more

9-9-2019

Equities gain on Chinese stimulus, GBP worried ahead of production data
Asian equities kicked off the week on a positive note as lower-than-expected jobs report in the US consolidated the dovish Federal Reserve (Fed) expectations and the People’s Bank of China (PBoC) announced more monetary stimulus amid country’s exports fell 1% … Read more

6-9-2019

Hexo is still a good play for cannabis investors
Hexo Corp is a leading player in cannabis industry with more than $1 billion market cap after the acquisition of Newstrike Investors like Hexo for its renowned international partnerships Revenues grow steadily, but investors are concerned with company burn… Read more

6-9-2019

NFP in focus, US jobs at risk due to trade war
The US dollar gained against most G10 currencies, except the kiwi, amid the strong data tapered the dovish Federal Reserve (Fed) expectations. The ADP employment data revealed on Thursday that the US economy added 195’000 private jobs in August, versus 148’000… Read more

5-9-2019

World equities rally, GBP extends gains
Equities rally worldwide as US and China said to meet early October in Washington, Hong Kong announced the withdrawal of the extradition bill and British MPs rejected a snap election by next month.The US markets closed Wednesday’s session in the green. S&P… Read more