Market News & Analysis
FTSE Extends Winning Streak As No Deal Brexit Taken Off the Table
Fiona Cincotta March 15, 2019 12:00 AM
Pound lower ahead of tonight’s vote
The pound traded lower on Thursday, ahead of a third vote in Parliament this evening and after Labour failed to back a second referendum amendment. The pound fell back to $1.32 as hopes over a second referendum were reined in.
Dax struggles on German economy woes
The Dax was a noticeable laggard within Europe, with investors unable to shake off growing concerns over the health of the German economy. German industrial production figures earlier in the week disappointed and today, German inflation also surprised to the downside, ticking lower to 1.4%. Rather than anomalies, softer data is becoming a trend for Germany as more evidence points to slowing growth.
The German economy is reliant on its manufacturing sector and strong exports, areas which are being undermined by slowing global growth, trade wars and Brexit uncertainty. Added to that the faltering German car industry and it becomes quite clear why the IFO downgraded German economic growth for this year to just 0.6% from 1.1%.
Wall Street opens down
Wall Street opened on the back foot as investors mulled over US – Sino trade dispute developments, disappointing US new homes sales data and a hefty slide in Facebook.
It has been a while since we have heard anything new regarding progress in the US – Sino trade dispute. So, reports that President Trump and China’s President Jinping Xi are trying to push back on a date to meet, was not the encouraging news that investors were hoping for. The two leaders were expected to meet at Mar- a- Lago later this month. This now looks to be later in April raising suspicions that the deal isn’t as close to completion as both sides have been letting on.
Facebook shares hit by outage
Facebook shed over 2% as investors reacted to the most severe outage in its history. Not only Facebook, but also Whatsapp and Instagram accounts were affected. Whilst Facebook insist that hackers were not to blame and that the outage was caused by a database overload, investors are clearly weary. Trust and transparency is a big issue with Facebook, following what feels like scandal after scandal in recent years. Investors will be concerned that Facebook are not being as honest about this as they could be, which is causing a selloff in the stock.
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.