Market News & Analysis


Top Story

Asia disputes rumble on

The Sino-US dispute seems no closer to a resolution despite weeks of back-and-forth on what negotiators call the phase one of the deal. Messages from the two sides remain contradictory. While some Chinese officials keep saying optimistic things about the state of the talks an interview with an unnamed White House official published by Reuters Thursday poured cold water on hopes of a resolution. 

The continued rumbling of protests in Hong Kong is not letting up either and Asian investors in particular are keeping a wary eye on the developments there. The local stock index Hang Seng dropped 1.6% in early trade and although indexes in Shanghai and Tokyo lost less ground, the overall sentiment remained fairly cautious. 

Matthey, Mail lead fallers 

Metals and chemicals firm Johnson Matthey led the FTSE fallers with a 6.56% decline after it reported a 2% decline in profits. However, unlike many other industries that fight against the tide of the times Johnson Matthey is actually well placed to benefit from calls for more environmental protection. Its trademark products are catalytic converters that control car emissions and it is working on new lines that will be used in other industries too. That explains the company’s willingness to up dividends for the year in expectations of a stronger second half performance. 

On FTSE 250 the biggest story is Royal Mail with a 17.49% decline. Though the postal service reported an operating profit for the first half of the year, turning around last year’s loss, investors remain bearish on the stock. Its planned restructuring is currently behind schedule and possibly the even bigger bigger dampener is a threat of strike in December. Not least, the postal service is on Jeremy Corbyn’s nationalization radar which is adding to the stocks’ lack of popularity.

Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.