Market Insights & Analysis

Read our analysts' daily briefings, together with our Market Snapshot reports.

04 Feb 2016 08:27
Three month LME zinc prices rallied for the fifth straight session as a sharp sell-off in the dollar against a basket of major currencies as well as improving fundamentals in China buoyed demand for the metal. The Bank of England’s MPC are due to release their base rate decision later today which the majority of market participants expect to remain unchanged at 0.5%.
20 Jan 2016 08:51
The pound sterling dropped to its lowest level against the USD since 2009 yesterday as Bank of England Governor Mark Carney signalled that it was too soon to consider a rates rise, pushing back the expectation further. Crude oil came under renewed pressure yesterday as Brent front month futures attempted to recover back above $30/bbl, however, these efforts were in vain as markets slid lower giving back the majority of the day’s gains. Spot gold prices rallied strongly overnight and early this morning as the safe haven asset traded back above $1,096/oz.
14 Jan 2016 08:59
Front month Brent futures dipped below $30/bbl for the first time since 2004 as expectations that Iranian crude could soon be hitting the market dampened investor sentiment. The dollar remains well supported above the 50 day moving average as confidence in the US economy continues to build. Today is a somewhat busier session for economic activity with the Bank of England interest rate decision expected at midday followed by a string of US economic indicators.
10 Dec 2015 09:20
Front month crude prices failed to halt the bear run yesterday as both Brent and WTI prices slipped for the fourth straight session after a late stage rally failed to take root. The dollar faced further headwinds ahead of next week’s FOMC rate decision as it experienced substantial selling pressure against a basket of major currencies yesterday. UK investors will be eagerly anticipating the Bank of England interest rate decision today and while the consensus expectation is for rates to remain unchanged at 0.5%, market participants will be on the lookout for any phrasing or terminology that could offer any additional insight.
07 Dec 2015 08:22
An eventful week last week as investors were offered plenty of cues from central bankers with the US Fed offering further strong hints that it would look to raise rates at next week’s FOMC meeting. After a bumper week for economic data last week we’ll be getting off to a slow start this week with UK Halifax house prices and Japanese third quarter GDP data the only data points of note to look forward to today.
06 Nov 2015 08:30
Encouraging comments from Fed officials in recent days has improved the prospect of a December rate rise among market participants. All eyes will be firmly fixed on today’s non-farm payrolls and unemployment data with the latest Bloomberg poll indicating commentators expect 185K, a substantial improvement from the previous months figure of 142K. The Bank of England struck a surprisingly dovish tone yesterday after holding rates unchanged and offering additional insight in its Inflation Report.
02 Nov 2015 08:36
Crunch time for the Bank of England is fast approaching as policymakers meet this Thursday for the penultimate MPC meeting of the year. The Turkish lira experienced considerable strength against the USD during early trade on Monday morning after a surprise win for the AK party. China’s manufacturing PMI reading for October released over the weekend offered little encouragement for investors who had hoped that activity in the world’s second largest economy had finally bottomed out and reached a floor.
29 Sep 2015 08:23
After a relatively stable September the rouble seems poised for a breakout as indicated by the technicals. Embattled commodities trader Glencore saw its shares hit a fresh record low yesterday, closing over 30% lower on the day as concerns regarding its burgeoning debt pile prompted investors to sell-off en masse. The Bank of England is expected to hold off from an interest rate increase at least until the mid-2016 according to the Centre for Economics and Business Research.
28 Sep 2015 08:38
After a somewhat disappointing September FOMC meeting as policymakers in the US opted to keep interest rates unchanged despite the hype surrounding the decision among market participants around the world Fed chair Janet Yellen offered additional clarity late last week. The yen continues to find firm support around 120.00 against the dollar as Chinese growth concerns continued to weigh heavily on investor sentiment. The pound sterling faced another under pressure week last week as selling dominated trading activity and dollar strength saw the pound lose over 2.6% throughout the week.
10 Sep 2015 08:52
The Bank of England announces its latest decision on interest rates, which have been unchanged at 0.5% since March 2009. The Halifax survey showed that house prices increased by 2.7% m/m in August, beating expectations of a more modest increase of 0.5% and showing the biggest monthly increase since May 2014. Sterling slid lower towards 1.5350 against the USD, while the London equity benchmark index retreated nearly 1.0% in early trade this morning, towards 6,170.
07 Aug 2015 08:36
Yesterday’s macroeconomic data releases offered further insight into US labour market conditions and saw support for a rates rise in the coming months gather pace. The rouble rout shows little signs of halting its slide against the dollar as the currency trade towards 64.50 against the dollar yesterday. UK investors were left slightly confused yesterday as the outlook presented by the Bank of England in their inflation report was more dovish than the majority of market participants had expected.
06 Aug 2015 09:17
It’s finally here, the day market commentators have dubbed ‘Super Thursday’ as the Bank of England prepares to release a torrent of reports, data and analysis on the UK economy. The case for a US rates rise continued to strengthen yesterday as better than expected US data saw confidence in the economy improve. As the camp expecting a rates rise in the coming months from both US and UK central bankers gains support, investors will be paying close attention to macroeconomic data releases.
29 Jul 2015 08:46
Base metals indicated encouraging signs early on this morning after steady gains posted yesterday stemmed the recent rout in the metals market. It seems as if intervention from policymakers in China to utilise state funds in an effort to prop up the equity market is having the desired effect with mainland Chinese stock indices gaining just over one percent overnight. The ECB approved the reopening of the Athens Stock Exchange yesterday with further details on the exact timing and proposed trading restrictions still to be decided.
09 Jul 2015 09:22
Alcoa reported Q2 earning results that missed analysts' expectations. Net income fell to 10 cents/per share from 12 cents/per share a year earlier. The disappointing earnings results might be due to the sharp price declines of aluminium which has retreated recently due to surging exports from China.
17 Jun 2015 08:13
The pound sterling extended gains against the euro yesterday after a momentary pause on Monday as resistance held firm at the 50 day moving average towards 1.3840 euros to the pound. Eurozone bond volatility surged on fears Athens would continue to reject bailout terms as EU finance minister met once again to try and reach an agreement to talks that have dragged on for months. Another session of choppy trading is expected today with the Bank of England due to release minutes from their June meeting earlier this month as well as the release of unemployment figures for April and May.
04 Jun 2015 07:53
Efforts to reach a deal after four months of negotiations gathered pace as Angela Merkel stepped in to help break the stalemate and Greek Prime Minister Alexis Tsipras continued to hold talks with eurozone officials in Brussels. Sterling extended its bear run against the euro for the sixth straight session yesterday after comments from ECB President Mario Draghi during yesterday’s press conference outlined the positive outlook for the eurozone economy. Cocoa futures resumed their upward rally after Ghana revised its production forecasts lower from 850,000 tonnes to 750,000 tonnes for 2015.
20 May 2015 15:30
Global equity markets on both sides of the Atlantic saw tentative trading ahead of this evenings release of April’s FOMC meeting minutes as investors weighed up the prospects of further delays in path to rising interest rates. The Bank of England unveiled in its May 7-8 meeting minutes that MPC members voted unanimously against an interest rates increase, a 9-0 move to keep rates unchanged at 0.5%.
13 May 2015 13:50
Three month LME zinc futures rallied for a second day, climbing back towards $2,375/tonne after adding almost 2% yesterday as prices continued to recover some of the previous week’s losses. The Bank of England cut its growth outlook for the UK in its quarterly inflation report, revising downwards its forecasts for economic growth over the next three years.
20 Mar 2015 07:54
The dollar index headed for its worst weekly loss since 2013 as the greenback pared recent gains against a basket of major currencies. The EU is taking further action towards stepping up the economic sanctions against Russia with EU leading agreeing last night that current measures would be maintained unless the ceasefire between Russia and Ukraine which was brokered last month is implemented in full by Moscow.
18 Mar 2015 08:06
Chinese home prices extended their declines last month with prices for new residential apartments across 69 out of 70 major cities falling in February year-on-year while prices remained unchanged in one as the economic slowdown continued to drag the property sector lower. Spot gold prices traded at a four month low yesterday as intraday moves briefly saw dips below $1,143/oz ahead of today’s FOMC meeting. A busy session for macroeconomic updates today with the Bank of England set to publish minutes of their last MPC meeting later this morning closely followed by the eagerly anticipated final UK Budget before the elections.
05 Mar 2015 16:07
European equity markets rebounded strongly in today’s trading session, while the euro remained under further pressure, trading around 1.10 against the US dollar. The Bank of England and the European Central Bank held interest rates unchanged at their current low levels, providing further support to equity markets.
05 Mar 2015 08:59
Despite the modest economic data, the European equity markets opened higher this morning. The ECB and Bank of England report interest rate decisions today.
21 Jan 2015 15:23
A choppy trading session today with mixed results across European benchmark indices as jittery investors rushed to position themselves ahead of tomorrow’s all important ECB meeting. Having dropped back to levels last seen in 2003 late last week, trading towards 1.1460 on Friday, market participants are hopeful that the central bank’s commitment to shoring up the single currency by buying as much as €50bn per month until the end of 2016.
08 Jan 2015 15:21
The dollar traded towards a fresh nine year high today, rallying towards 92.529 after building on firm support from the open at 92.00 as investor confidence gained on Fed comments. With market participants gaining fresh insights into the Fed’s outlook the appetite for risk improved today with global equity benchmark indices on both sides of the Atlantic extending yesterday’s gains
04 Dec 2014 16:38
04 Dec 2014 08:21
Asian equities followed Wall Street higher during overnight trading as investor optimism that growth in the US was steadily improving and a weaker yen supported risk appetite. Spot gold prices pulled back during the Asian session after rallying off support towards $1,200/oz. With both the ECB and BoE due to meet today investors will have plenty to keep them engaged.
12 Nov 2014 16:13
A cautious session for global equity markets today with European stock indices dipping lower as the news of five major banks being fined $3.4bn in a longstanding forex probe saw appetite for risk reduce. Market optimism was dealt a further blow after the Bank of England inflation report confirmed what many market participants had already been thinking by forecasting that interest rates would need to stay at historic lows until next autumn to prevent inflation remaining below its 2% target.
12 Nov 2014 08:55
Crude oil prices continue to remain under pressure, with Brent front month futures falling towards $81 per barrel and WTI front month futures heading towards $77 per barrel.
11 Nov 2014 16:02
Investors will be keeping an eye on the Bank of England’s inflation report and ILO unemployment rate in the UK, tomorrow. In the meantime, European equity markets edged higher in today’s trading session.
05 Nov 2014 16:51
European equity markets rebounded in today’s session and posted strong gains. Crude oil prices climbed higher, as the weekly EIA oil inventories report spread an optimistic tone across the market after showing a smaller than expected rise of 460,000 barrels in crude oil stocks.