Category Archives: Market Overview

Week Ahead: 24th September 2018

This is a busy week for financial markets, with plenty that could drive asset prices. Below, we look at three key events to watch for this week. 1, The Italian Budget After months of discussions and market nervousness, the deadline for the fragile Italian coalition government to deliver its inaugural budget is Thursday 27th September.

Why the pound’s rally could be capped, and warning signs for US stocks

As we approach the end of the week the political rhetoric that has been impacting volatility in recent weeks has started to calm down. Rather than lurch from political comment to political comment, traders are able to sit back and take a broader view of the markets. This, dare I say it, noise-free day in

Can Theresa May save the pound?

All eyes will be on British PM Theresa May as she makes her way to Salzburg today to address EU leaders over dinner this evening. This informal summit is considered a turning point for Brexit: will the UK be able to pull the ultimate deal (single market access and frictionless trade, minus free movement of

Round up: central bank deluge and weak US economic data set fire under FX

Bond, stock and FX markets have all experienced some big moves today on the back of a deluge of central bank meetings and some weak US economic data, which weighed heavily on the dollar. The question now is whether today’s events will prove to be a watershed moment for markets with the pound making its

ECB could boost Brexit prospects as China placates the markets

European markets are basking in the glow of a fresh Chinese liquidity injection this morning, with markets a sea of green as we head into London lunchtime. Today’s move by the PBOC has also given some respite to the struggling Aussie dollar, which has managed to find some temporary support at 0.7120, which is just

Amazon vs. the rest of the world, what next for US stocks?

  As we move into the autumn months, it’s worth looking more closely at the US stock market, which appears to have disconnected from other risk markets. For example, Amazon made a fresh record high on Tuesday and became another trillion-dollar company. In contrast, the South African rand is close to a record low and

Is the EM FX sell off overdone?

  Emerging markets are in focus for another day. The South African rand made a fresh 2-year intraday low versus the USD and is now more than 4% lower since Monday. Contagion has taken hold, and emerging market FX is a sea of red today, this has also spread to the emerging market equity space,

Why US equities could continue to outperform

  Markets across the board are struggling with uncertainty on Thursday, and US equity futures are all pointing lower at the time of writing. Events weighing on investors include, the continuing trade dispute between the US and China, which has flared its head once again, and the as yet unsigned Nafta deal is also leaving

Trump’s impact on US GDP, and why the Brazilian real is the new Turkish lira

  US stock index futures have turned lower even though the second reading of Q2 GDP was revised higher to 4.2% from 4% initially. Personal consumption slipped a little, to 3.8% from 4%, however private investment and trade helped to boost the overall GDP report.   Trump’s trade tariffs pay dividends already The impact of