Market News & Analysis


Top Story

FTSE slides lower on Brexit deadlock, Chinese data

The FTSE started the week in a more downbeat mode as Brexit negotiations failed to make any progress over the weekend and Chinese data showed how much damage the Sino-US tariff war is doing to the country’s trade. Chinese imports have now been shrinking for five months and the September data showed a deeper contraction than in previous months.

Although the US and China made some progress late last week and President Trump suspended tariffs due to come in in mid-October the damage from the existing trade restrictions are being felt.

Sterling drops as talks reach deadlock

The pound has dropped like a pebble overnight after Brexit negotiations didn’t lead to any significant progress over the weekend. Sterling had bounced to levels not seen since the beginning of the year after Boris Johnson and his Irish counterpart indicated that they might have a solution to the Brexit deadlock. However, hopes of a resolution were dashed after EU negotiators commented that the are not getting even into the ballpark range of where they would like to be with negotiations. This gives Boris Johnson only one more week to pull the rabbit out of the hat. The pound has in the meantime slipped back to 1.2565.

Oil slides on weak Chinese data

With the situation in the Gulf seemingly quiet for the moment the oil market’s focus has turned back to the slowing global demand. Prices are coasting along the $60 level but activity is fairly unconvincing.

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.