Market News & Analysis

Top Story

European Equity Market Handover: Italy Déjà vu times two


Stock market snapshot as of [15/5/2019 1:43 PM

  • As prospects that the preeminent headwind against risk-taking—chiefly the rekindled U.S.-China trade dispute—might recede, stock markets fade Tuesday’s optimistic bounce
  • Additionally, as Italy’s coalition government approaches half-way through a typical term, existing fractures are widening and bond market volatility resuming
  • Deputy Prime Minister Matteo Salvini’s suggestion that Italy might purposefully flout EU fiscal prescriptions has swiftly triggered Italy’s key economic fault line of debt and their conduit to the stock market, under-capitalised and over-exposed banks
  • Two-fisted aversion has thereby capped European indices all session
  • Oil shares lose their early-week advantage after Tuesday’s American Petroleum Institute data showing inventories building; energy market participants are focusing more strongly on the EIA update that will be out shortly
  • The dollar shows signs of resilience despite weak U.S. Retail Sales and disappointing Industrial Output. The greenback sees inverse help from a soft Canadian inflation print; also from a much better than expected read of the New York Fed’s economic region, where the output index hit 17.8% this month against 8 expected

Corporate News

  • Kingfisher brought the standout set of corporate figures and they weren’t inspiring. Europe’s top DIY retailer failed to outpace ‘easy’ comparable sales from last year’s first quarter, sealing the likely fate of CEO Veronique Laury, who investors expect to step down this year
  • Parts of the U.S. retail sector may contrast sharply with Europe, if Macy’s is a good indicator. The store operator’s Q1 comparable sales growth was more than double the 0.3% expected. Adjusted earnings were well above Wall Street views. The stock trades firmly in a falling S&P 500 index.  
  • NVIDIA will close out the Big tech earnings season tonight and expectations are low, with adjusted Q4 EPS seen slumping about 50%

Upcoming corporate highlights


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.