Market News & Analysis
Market Brief: Bears Thanksgiving to Trump for a change
- Market update at 13:30 GMT: The AUD and GBP were the weakest while EUR was the strongest in another lacklustre session for FX; European stocks were off their worst levels but still lower on the session. Gold and silver were flat and oil a touch lower following yesterday’s drop.
View our guide on how to interpret the FX Dashboard
- GBP gave back some gains following its late upsurge yesterday when it found support on the back of the MRP election poll, predicting a 68-seat Tory majority. This is considered to be more accurate than standard polls and if it turns out to be correct then Brexit will likely be ratified by Parliament and the UK leaves the EU with a deal by January 31. But as accurate as MRP might be, traders are taking no chances – and so profit-taking caused sterling to dip again. However, it was testing $1.2900 support at the time of writing, so it had an opportunity to rebound.
- AUD was hurt by weaker-than-expected Australian capex data
- JPY remained near its recent lows as Japanese retail sales slumped at their fastest pace in 4.5 years in response to the new sales tax hike.
- Thanksgiving Day in the US means Wall Street is closed for trading and economic calendar is light – hence, there was a data dump in the US yesterday and probably why Donald Trump decided to sign the Hong Kong bill into law, hoping it will go unnoticed. BUT it didn’t. US stock index futures dropped, leading falls for Asian and European stocks on Thursday. But although China has vowed to retaliate, its Foreign Minister said Beijing will take firm counter measures if the US continues in this way. This suggests the signed bill may not be too detrimental to trade negotiations after all. The FTSE had found support in recent days on relief from dwindling chances that Labour can win Britain's election. However, along with global shares, the UK benchmark index has been hit by some profit taking and selling pressure.
- Stocks on the move by my stock market expert colleague Ken Odeluga:
- Severn Trent, United Utilities and Pennon led the declines in London as utility shares fell the hardest.
- Virgin Money surged as much as 28%, its biggest one day gain ever. Though the financial services group booked an £194m full-year loss, its PPI charge was below estimates and net interest margin beat expectations. It will consider resuming dividend pay outs in 2020.
- Go-Ahead Group, a UK transportation firm, dropped 4% after a trading update pointed to slightly weaker than expected regional bus performance.
- Pebble Group, a media firm, says its planned IPO on small-cap market AIM is fully subscribed, with a max offer of £135m. Trading will commence on 5th December
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.