It was a choppy start to the morning in the London markets, with the FTSE down 0.45%. Globally markets are in negative mood this morning on the back of poor data from China which analysts now reckon is evidence that the trade war with the US is having an impact. Fixed asset investment in China is also now at its lowest level since it began to be formally tracked in 1996.
There was also a poor report out of Japan which drove the Nikkei down 0.8%.
In Europe there were also bearish economic data from Germany, which narrowly dodged a recession following its Q3 GDP data release. European traders did not like it and most European bourses are down this morning as a consequence.
Burberry surges on good H1 profits
Shares in Burberry Group are up over 5% this morning. The fashion firm said H1 profits were up by 5% versus the same period last year. This seems to have surprised investors who have become used to a string of bad numbers from fashion retailers. There are concerns that the riots in Hong Kong may be hitting Burberry sales for H2.
No progress on China talks hits confidence
The market has been waiting for some time now for concrete progress in the US-China trade talks. There had been hopes that the Trump administration would announce something this week but rumours in Washington indicate that talks have hit an impasse over farm purchases.
All this additional risk concern is feeding through into some safe haven buying in the currency market. Both the JPY and CHF are close to week highs versus the dollar. The USD is currently responding to any news of progress – or lack thereof – from the China talks which has become a major focal point for traders.
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.