Market News & Analysis
China's January olive branch
Fiona Cincotta December 23, 2019 7:13 PM
It seems that the phase one of the US-China trade deal is working as China said Monday that it plans to cut tariffs on imports including frozen pork and semiconductors from the beginning of the new year. European shares are still catching up mostly because the mulled wine is already flowing but the FTSE has lifted up from an opening dip thanks to a spectacular rally in NMC Health shares.
The war of words between due diligence firm and short seller Muddy Waters which accused the company of misstating debt and making unexplained investments has cost Abu Dhabi-based NMC a 52% drop in share price since early last week, but the health firm is now hoping to put the accusations to bed with an independent review. NMC Health is trading up 30% this morning but it still has some way to go to recover to the pre-Muddy Waters level.
Pound nudges lower
The pound is feeling some residual pressure from last week’s Bank of England rate meeting in which the bank left open the possibility to cut the cost of borrowing next year. With Andrew Bailey due to take over at the helm of the Bank in January there is further uncertainty over the BoE’s future course on interest rates. For the moment the pound is giving up ground to the dollar and the euro although volumes are already showing the signs of pre-holiday trading shrinkage.
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.
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.