Market News & Analysis
Market Brief: Will We Finally Get Clarity on Brexit This Weekend?
Matt Weller, CFA, CMT October 19, 2019 5:35 AM
- After garnering the approval of the EU yesterday, Boris Johnson’s Brexit deal goes up for a tight vote in Parliament this weekend (though depending on amendments, BoJo may have to request an extension and delay the vote until Monday). One way or another, the pound and FTSE are poised for interesting opens to next week’s trade!
- Fed Vice Chairman Clarida did little to dissuade the market from expecting an interest rate cut in the last public comments ahead of the Fed’s end-of-month meeting. Markets are currently pricing in a more than 90% probability of a 25bps cut in two weeks’ time.
- USD/CAD is testing key support ahead of the country’s upcoming razor-thin federal election.
- FX: The pound was the strongest major currency today on Brexit deal optimism, while the US dollar brought up the rear for the second straight day.
- Commodities: Both oil and gold traded lower on the day.
- US indices closed lower on the day, dragged down by generally weak performance in high-profile, large-cap companies (see below).
- REITs (XLRE) were the strongest major sector on the day, while Communication Services stocks (XLC) brought up the rear.
- Check out the key economic events and themes we’ll be watching in the coming week!
- Stocks on the move:
- Coca-Cola (KO) bucked the market’s general weak trend, gaining 2% on the day after reporting solid earnings, with smaller cans and strong sales of Coke Zero Sugar boosting the company’s bottom line.
- American Express (AXP) dipped -2% after narrowly beating earnings and revenues expectations.
- Boeing (BA) dropped -7% on a Reuters report stating that employees misled regulators about the safety issues with the company’s 737 MAX jet.
- Slack Technologies (WORK) dumped -9% today and is now down nearly -50% from its intraday IPO-day peak in June.
- Netflix (NFLX) gave back another -6% today and is now trading below Wednesday’s closing level, when it reported mixed earnings.
- Johnson and Johnson (JNJ) dropped -6% on an asbestos-related recall of baby powder products. The company’s brand famously benefitted from aggressive early recalls of cyanide-laced Tylenol in 1982, but traders are selling first and asking questions later this time around.
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.