Market News & Analysis
Market Brief: New record highs await Wall Street
- Markets update: Risk-ON at start of the new week so far, with European stocks, US index futures and crude oil all rallying, while in FX safe-haven yen was falling and risk-sensitive Aussie and kiwi dollars rising. Sentiment has remained supported by positive signals around US-China trade negotiations, while concerns over an economic slowdown have eased following the release of some above-forecast macro data of late. But will the optimism carry on once Wall Street opens for trading?
View our guide on how to interpret the FX Dashboard
- USD/JPY, supported by risk-on rally, was approaching the pivotal 109.50 level as US investors slowly made their way to their trading desks. The EUR/USD was flat, with the euro on the one hand undermined by weakness in Spanish flash manufacturing PMI, while on the other hand it was helped by upward revisions for German, French and Eurozone final PMIs.
- The Sentix Investor Confidence, a barometer of investor sentiment towards the Eurozone economy, improved sharply to -4.5 from -16.8. However, as the latest reading remained below zero again, which meant that investors still remained pessimistic. However, despite the still negative investor sentiment, European equities remained in the rally mode, with major indices breaking to fresh highs with solid gains. Wall Street futures pointed to another record high for the S&P and Nasdaq.
- Stocks in focus by colleague Ken Odeluga:
- Under Armour plunges 15% in early deals ahead of Wall Street's open on an accounting probe, eclipsing the sporting goods company's Q3 report
- Uber reports after the U.S. market close, with another quarter of huge losses expected though revenues are forecast to rise 15% to $3.5bn
- McDonalds is also in the spotlight after CEO Steve Easterbrook's abrupt resignation following what the company called a "recent consensual" relationship with an employee that violated company policy. The stock traded about 2% lower in the pre-market
- Ryanair beat Q2 revenue forecasts, lifting the stock $6.66 by mid-morning. An 18% rise in sales of 'add-ons', known as ancillary services, propelled overall sales above expectations
- Saudi Aramco, the Kingdom's massive state oil company, finally started its initial public offering (IPO) on Sunday, when it announced its intention to float on the domestic bourse. This could be the world's biggest listing, as Saudi Arabia seeks to diversify its economy away from crude oil.
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.