Market News & Analysis


Market Brief: Brexit and US-China Trade concerns return

  • At 12:30 BST, GBP was the weakest and JPY the strongest among the G10 currencies. Elsewhere, stocks were lower following Friday’s rally, gold was higher again and Bitcoin was flat.

  • The pound gave back some of the sharp gains it made at the back end of last week, when optimistic investors rushed to buy the beleaguered currency at oversold levels as hopes were raised that the EU and UK were finally reaching a Brexit agreement. However, as my colleague Fiona Cincotta noted earlier, “hopes of a resolution were dashed after EU negotiators commented that they 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 euro found some mild support on the back of news Eurozone industrial production rose by an above-forecast 0.4% in August. However, China’s exports and imports shrank more than expected in September, weighing on the Aussie and Kiwi.

  • STOCKS: After a big rally last week, risk assets sold off earlier today on the back of news that China wanted more talks before signing Trump’s ‘phase one’ deal. The news sent stocks, oil and commodity dollars all lower, while safe haven gold and yen gained ground. This comes after the US and China agreed on outlines of a partial trade accord on Friday. US President Donald Trump said he and China’s Xi Jinping could sign the deal as soon as next month. However, today’s news that China wants more talks certainly raises a few questions – enough to scare investors a little.
  • There are no major economic data scheduled for release from North America, where the Americans are celebrating Columbus Day and Canadians are observing Thanksgiving.

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.