Market News & Analysis
Stocks Rally Into The Weekend
Fiona Cincotta March 16, 2019 12:16 AM
Have the DUP set their price?
Both the pound and the FTSE were on the front foot, continuing to show an impressive level of strength at the end of a politically fraught week. Following a series of 3 votes on Brexit, the PM has won time to bring her Brexit deal back to the House of Commons for a third meaningful vote on Tuesday 20th.
The pound is finding support from rumours that the DUP could be about to get behind the Theresa May’s deal in exchange for another hefty sum. As Hammond is drawn into negotiations, similarities can be drawn to when the DUP agreed to prop up the government for £1 billion, in 2017. Other Eurosceptic Conservatives ministers are also expected to draw behind the PM’s Brexit in fear of the UK never leaving the EU at all.
US manufacturing falls for 2nd straight month
Weaker US manufacturing data put a damper on an otherwise buoyant session. US industrial production rose 0.1% in February, lower than the 0.4% expected. This is just the latest piece of evidence that points to a sharp slow down of economic growth in the first quarter of this year. Retail sales, housing and manufacturing have all produced soft reports so far this year, supporting to the Fed decision to be patient with policy changes. The dollar swiftly declined following the release.
EUR/USD at 10 day high
EUR/USD surged to a 10 day high following the US manufacturing print. Eurozone inflation ticking higher to 1.5% had helped keep the euro steady across the morning before it seized on the weaker dollar, climbing to $1.1345.
Palladium at record high
The weaker dollar helped gold push back over $1300 after dipping 1% in the previous session. Palladium stole the show jumping to a record high of $1567.50. Speculation that Russia will ban the export of the palladium scrap has pushed buyers into panic mode. With the supply outlook tightening the bulls are firmly in control. These elevated levels could comfortably be maintained, with $1600 the next big level to watch for.
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.