Our analysts have their fingers on the pulse of the world's financial market news.
Equities look a little firmer on Tuesday but there is not much conviction behind the move. Worries over the latest escalation in
Wall Street managed to brush off trade uncertainties in the previous session,
The US dollar held onto yesterday’s gains overnight with the tailwinds of strong July US jobs figures and the prospect of inflationary US tariffs still intact. Cable closing below the important 1.30 threshold is a demonstration of the market’s rising concern that the UK will bow out of the European Union without a deal. Theresa May trying to shore up support from European leaders does not address the fact that according to recent opinion polls, a majority of the population think she is handling Brexit badly. Unless Mrs May does a U-turn on Chequers, we expect a leadership contest in the fall.
The Australian dollar was little changed after the RBA kept rates on hold, as expected. The Australian benchmark rate has now been stuck at 1.5% for two years and the RBA does not look like it is in any hurry to tighten policy. Australia is caught smack bang in the middle of the US trade war with China. Australia relies on the US for its national defence but does most of its international trade with China. Australia looks uniquely vulnerable to an escalating trade war with monetary policy that is already higher than most parts of the world, the next move in rates in our view is closer to 50/50 up or down.
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 71% 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.