Insight from our top analysts on the news that matters
The BoE is broadly expected to maintain its bank rate at the historical low of 0.50%. Of course, the delay in Fed’s normalisation plans will not be directly mentioned, yet cold winds from China and the slowing signs in economic recovery will certainly keep the MPC members from sailing the open sea.
Still, the pound trades above its 200-day MA level (circa 1.5320), a move that has been driven by SAB rumours and the better-than-expected industrial data yesterday. Even if the SAB Miller is not happening for the ...Read article
Germany woke up to a grey sky this morning. Its exports slumped by a significant 5.2% in month of August. The slowdown in China, which stands for 10% of German exports, is dangerously creeping in. Rising euro is also pulling away some support from German products in terms of price competitively. At a time when German companies are also suffering from reputational risk following the Volkswagen scandal.
European investors are talking about Deutsche Bank expecting EUR 5.8 billion write down in its investment bank division and predicting EUR 6.2 billion worth ...Read article
Cable made a bullish start in London on news that AB InBev revised offer to SAB Miller. Early gains were supported by a better-than-expected industrial and manufacturing data in the UK. Cable surged to 1.5309.
While the possibility of a deal keeps the pound upbeat against the US dollar and the euro, the activity on SAB Miller shares remains subdued. The company said InBev bid substantially undervalues the company and investors’ reluctance to buy the rumour could not suffice to support the early rally in pound. At this ...Read article
Once again the flip back to basic resources helped by a positive upgrade from Morgan Stanley on a number of mining stocks is giving the UK benchmark a push northwards. The surge in oil prices and Brent crude finally managing to return to the $50/bbl marker is also boosting the cyclical sector despite the IMF’s rather negative global growth viewpoint.
The FTSE has finally pushed its way through the 6300 level for the first time since late August, this is more than a little bullish and tends ...Read article
German factory orders contracted 1.8% in month of August; the slowdown in China is pointed as a major reason for the recent shrinkage in German factory orders as 10% of German exports are destined to China.
A second consecutive month of drop in Germany’s factory orders, combined to the ongoing stress around Volkswagen’s emission scandal, sufficed to revive stress again in Frankfurt this morning. The negative sentiment spilled over the European markets.
The DAX opened downbeat. All sectors trade in the red, utilities lead losses. ...Read article
Yesterday’s upside moves in global indices were yet another symptom of volatility, this time with risk attitude firmly switched on. Today’s a different story, with the FTSE attempting a challenge on the top of its 6 week range, the question remains whether we can break higher and remove the bearish spectre that the current consolidation presents. For the time being, the index has tested the 50 DMA (just below the 6300 mark) but may well find the going tough above here unless commodity prices continue to offer upside momentum and ...Read article
The US dollar took a dive on Friday as the labour data disappointed big in September. The US economy added 142’000 nonfarm jobs, last month’s 173K has been revised down by 37K. The unemployment rate remained stable at 5.1% yet the participation fell from 62.6% to 62.4%. The average hourly earnings stagnated. As a kneejerk reaction, the US dollar lost against all of its G10 peers. The US 10-year yields plunged below 2%.
Even if the market seemed confused following the softening in the US jobs market, the rout in oil ...Read article
Despite the European equity markets initially viewed the US NFP number as a negative for stocks and is ultimately playing catch up with the rally witnessed in US markets in late trading last Friday. The bounce in Asian markets has also imbued a sense of optimism this morning with all sectors marching higher and basic materials once again in the lead.
Brent crude oil prices remain in a fairly steady range, consolidating and somewhat directionless and unable lately to make a move through $50/bbl. The poorer than expected ...
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