Happy Chinese New Year
Our New Year special promotion is available now.
Market News & Analysis
Daily Brexit update: Nissan won’t be the last
Ken Odeluga February 5, 2019 12:10 AM
Daily Brexit update: Nissan won’t be the last
A decision by a high profile overseas-based manufacturer to switch production offshore is damaging enough in itself. An apparently coincidental recycling of already aired ideas by Downing Street on Monday exacerbates the look of a government whose store of ideas is running dry. Not to mention underscoring the absence of a sense of urgency. Nissan's decision to drop plans to manufacture a new SUV model in Sunderland comes even after the company was offered a controversial £60m support package soon after the 2016 referendum. It does not seem like a punchy call to predict further high-profile manufacturers will announce they’re pivoting away from the UK in coming weeks. Yet for now, another mooted round of talks with Brussels on the Northern Ireland remains unarranged. The slight movement in initiatives in that direction is that the Prime Minister will venture to Northern Ireland tomorrow to deliver a Brexit speech. We wonder how that will go down? This afternoon the Sun Newspaper suggests HM customs will temporarily avoid checking goods from the EU to prevent hold ups. No confirmation from Downing Street. Sights remain set on the next set of Parliamentary votes on 14th February.
How this affects our Brexit Top 10 markets:
GBP/USD: A spike on the Sun report recovers some of the loss pinned on weak construction data earlier, but the trend is still leaking gains since the 3-month top last week. Support above the $1.30 handle holds though. The rate was last at $1.3088.
GBP/JPY: No escape velocity from the ¥142.75 pivot. The sterling’s backslide leaves it at ¥143.95 and showing every sign of being magnetically drawn.
EUR/USD: Rangebound on a slight upswing yet beginning to revert well below the $1.15/1.155 range top. Latterly down 26 pips for the day at $1.1428.
EUR/GBP: The euro is also fighting back against sterling. Still the peak for now was on Friday at 87.93p. Sterling has enjoyed a slight bid at the start of the week, moderating the appearance of softness against the dollar and yen.
UK 100: The UK benchmark is soft with global markets in lieu of strong broader direction with the earnings and economic calendar light and China on holiday.
Germany 30: An awkward earnings season and weakening economic counters keep capping the German benchmark. It’s down 0.6%.
Lloyds: A 0.4% fall is slightly deeper than the FTSE’s flat-to-down state.
Barclays: Slight outperformance of its rival laden with more UK deposits sees Barclays fall 0.2%.
Tesco: Flat yet weak, like the FTSE, perhaps helped by brokerage upgrades in the retail industry
Barratt: Ahead of a closely watched update, lack of broader direction contributed to the shares slipping 0.3%.
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.