Market News & Analysis


Market Brief: Traders Calm Their Middle East Fears


View our guide on how to interpret the FX Dashboard.

  • After opening lower on fears of continued escalation in the tensions between the US and Iran/Iraq, markets calmed down throughout today’s US session with traders reassured by soothing comments from France and China. That said, most analysts still expect retaliation and another proverbial “shoe to drop” in one form or another.
  • A separate situation to watch will be developments around the planned signing of a “Phase One” trade deal between the US and China next week - China’s Global Times signaled today that “a speedy signing is not of the essence,” raising fears of another potential delay.
  • FX: The British pound was the day’s strongest currency, erasing Friday’s losses entirely. The Japanese yen and Australian dollar were the weakest, though AUD/USD is showing several bullish technical signs.
  • Commodities: Oil finished the day essentially flat after a big rally in the Asian session; gold tacked on 1% and hit an intraday high near $1600 on the tensions in the Middle East
 
  • US indices fought back from early losses to close modestly in positive territory.
  • Communication Services (XLC) was the strongest major sector on the day. Industrials (XLI), Materials (XLB), and Financials (XLF) brought up the rear.
  • Stocks on the move:
    • FAANG stocks led the way higher for broader markets (FB +2%, AAPL +1%, AMZN +1%, NFLX +3%, GOOG +2%).
    • Goldman Sachs (GS, +1%) and Morgan Stanley (MS, -0%) shrugged off news that their financial reporting practices were being investigated by the Bank of England.
    • Retailer Bed Bath & Beyond (BBBY) gained 3% on a WSJ report that the company was selling roughly half its real estate to a PE firm.

*There are no market-moving macroeconomic releases scheduled for Tuesday’s Asian session*


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.