Market News & Analysis


Top Story

The virus is back

Three issues are dominating the markets this morning: the return of China’s coronavirus, the European Central Bank meeting and the approval of the final Brexit bill.

FTSE stocks with exposure to Chinese markets such as miners, particularly the heavy-volume trade such as Glencore, hotel chains and airlines and HSBC bank are all dropping now that the spread of the coronavirus seems to have intensified. Even miner Anglo-American which reported a 4% increase in output dropped amid the virus news flow. China has quarantined Wuhan where the virus seems to have originated, preventing any transport in and out of the city of 11 million. The biggest concern remains that the virus will spread faster than usual because of the start of the Chinese New Year festivities, which sees large swathes of population travel across the country over a week-long period.

Is the mood about to change at the ECB?


When the ECB meets under the helm of Christine Lagarde later today it is not expected to change current interest rates but recent flickers of hope in the European economy could cause the bank to revise its narrative towards a more neutral rate stance rather than a dovish one. The euro is trading unconvincingly higher against the pound ahead of the meeting and marginally weaker against the dollar, reflecting investors' lack of conviction about a significant change ahead.

Boris’ “no children” bill passes

Parliament has approved the final version of the Brexit bill which was held up in the Lords earlier this week because it had cut out Britain’s commitment to take in the children of immigrants but now the bill just needs Her Majesty’s approval before it becomes final and guarantees Britain’s departure from Europe at the end of next week. The pound is a touch weaker against the dollar but it is holding firm above the $1.31 line.

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.