Market News & Analysis

Top Story

US may avoid further shutdown as wall deal reached

The big news of the day for US markets is the fact that some form of deal seems to have been reached between Congress and the White House over funding for Trump’s border wall project. Although the details have yet to be confirmed by the administration, it represents a much more watered-down funding package, which will allow both sides to claim victory of a sort – e.g. a shorter wall and a smaller budget. The key issue is that it should avoid another US government shutdown at the end of the week, which would not have been greeted well by the markets.

The S&P 500 had a fairly range bound day yesterday and closed marginally up. But despite the potential for good news, US traders are focused on ongoing trade talks in China. Hence the USD and US stock indices have been a little directionless so far this week.

Debenhams thrown new lifeline

Debenhams has received a stay of execution, obtaining a 12 month credit facility. This will allow the struggling department store to carry out further refinancing. The package also buys management of the firm time to start selling off some assets. Will it be enough to save the company? At this stage it is too early to tell, but it certainly looks more viable as a value play, with the share price up by 35% since the news broke. Much will hinge on the management team's ability to make Debenhams a more viable concern.

Market waiting for news of possible revised Brexit deal

On the Brexit front the market – and Parliament - is expecting a possible update on talks from Theresa May today. Rumours are circulating that there may be a new deal in the pipeline following talks between EU chief negotiator Michel Barnier and UK Brexit Secretary Stephen Barclay yesterday. Some 40 to 60 Labour MPs are also thought to be considering backing an improved deal if May is able to serve one up. It remains to be seen whether they have succeeded in resolving the contentious Irish backstop issue.

From a technical perspective, the GBP is still looking bearish, with strong selling pressure due to the absence of a deal. The FTSE continues to pop up whenever we see the market punishing sterling, but evidence that Brexit is really starting to affect UK economic growth will be bad news for equities and the pound in the medium to long term.


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 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.