Market News & Analysis
Market Brief: Brexit remains in focus
Fawad Razaqzada October 22, 2019 8:03 PM
- At 12:40 BST in London, NZD and USD were among the strongest in FX while CHF, AUD and CAD were among the weakest. Volatility was on the thin side amid the lack of any important macro data. Stocks were mostly higher, recovering from a weaker open. Commodities were mostly higher including gold, silver and crude oil, while copper was a touch lower.
- In a largely data-void session, the focus remained predominantly on Brexit, thawing US-China trade dispute and corporate earnings.
- On the trade front, US President Donald Trump said a deal with China was “coming along very well,” while China’s vice foreign minister said some progress had been made. Hopes that a deal will be agree upon in the coming months has kept the stock markets supported despite growing concerns over valuations and weaker earnings guidance amid a slowing global economy.
- The Canadian dollar gave back some of its recent gains after Prime Minister Justin Trudeau hung onto power following Monday’s election. His Liberals were reduced to a minority government, winning only 156 seats (a decrease of 21). A potential coalition with the left-leaning New Democrats (who won 24 seats) will give them a majority in the 338-seat House of Commons.
- The pound held below $1.30, giving back some gains, as investors awaited fresh developments in parliament today. Prime Minister Boris Johnson will be trying to push legislation through to enact his EU exit deal within just three days and fend off attempts by opposition MPs to attach a second “confirmatory” referendum to a Brexit deal.
- Company news was light too:
- Shares in Reckitt Benckiser dropped sharply after the British household goods maker cut its full-year sales forecast for the second time this year.
- Logitech shares climbed after the Swiss tech firm reported a 4.5% increase in quarterly operating income.
- UBS led financials higher after the Swiss banking giant posted a loss which was smaller than expected.
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.