Market Insights & Analysis

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

20 Nov 2015 08:58
Crude oil prices remain under pressure as ongoing concerns regarding global supply glut dominate the market and weigh heavily on market sentiment. This morning, WTI futures came under renewed pressure in early trade and extended declines towards $40 per barrel while the strong USD adds additional pressure to the market. Please note that both WTI and Brent front month futures have declined over $8/barrel within 3 weeks in November.
18 Nov 2015 09:00
The US Federal Reserve publishes minutes from its latest FOMC meeting this evening. At the last meeting, the US Fed reported that the current 0% to 0.25% interest rate target “remains appropriate”. The US dollar index hit a high yesterday at 99.745 despite the recent disappointing US economic data. However, this morning the USD index slid slightly lower in early trade and hovered around 99.50 against a basket of currencies.
17 Nov 2015 09:01
The strong USD rally continues to dominate the global equity and commodity markets, as the USD index rallied for third consecutive session and extended gains above 99.50 against a basket of currencies. Gold has been hovering around $1,080/ounce. Copper extended declines towards $4,600 this morning, as the strong USD and bearish copper fundamentals weigh on market sentiment.
13 Nov 2015 08:57
European equities continue to remain under pressure extending losses in early trade on Friday, following the tepid GDP data. The German economy grew by 0.3% in Q3 2015, in line with expectations, while its y/y figure was reported at 1.7%, missing estimates of 1.8%. The French economy grew by 0.3% in Q3 2015, in line with estimates. The EUR continues to remain in choppy consolidation mode after hovering around 1.0750 against the USD. Today’s release of European GDP data has failed so far to provide any direction to the currency.
12 Nov 2015 08:57
Today, the main focus will switch to the release of the weekly jobless claims as well as the monthly Fed Budget Statement, which will set the tone for the trading session. Fed Chair Janet Yellen will deliver a speech at a Fed conference at 14:30 GMT, providing an insight regarding the current US economic conditions and prospects. The USD index extended gains this morning, breaking above the 99.0 area against a basket of currencies.
11 Nov 2015 09:00
Market participants will be keeping an eye on the crucial political conditions in Portugal following the collapse of the government in the country. Portugal’s 10-yr bond yield hit a 5-month high as it widened to 2.85% yesterday. It seems Portugal’s uncertainty is likely to dominate the markets during the following weeks for the rest of 2015, until the political situation stabilises.
22 Oct 2015 09:15
The main focus will turn to the ECB meeting as investors remain cautious awaiting the speech of ECB’s President Mario Draghi regarding market expectations. We do not expect any big surprises coming out of the meeting as it seems unlikely the ECB to introduce further QE into the European economies, partially due to inflation concerns and increasing worries regarding the Eurozone’s economic growth.
08 Oct 2015 09:05
Market participants will be keeping an eye on the release of the US Fed minutes this evening, looking for clarification of the current US economic conditions and prospects. Furthermore, investors’ attention will also turn to the IMF and World Bank Annual Meeting which will take place this weekend. The USD index currently remains under pressure, hovering around 95.0 against a basket of currencies.
06 Oct 2015 11:10
Crude oil prices hovered within the recent range in early trade this morning as investors await renewed talks that Russia is ready to meet OPEC and non-OPEC crude oil producers in order to discuss the market. The news provided strong upside momentum in the oil market, as Russia has been thus far unwilling to cut oil production and cooperate with the OPEC members in order to support the current low crude oil prices.
05 Oct 2015 09:12
Asian equity markets rallied overnight with the Nikkei index gaining over 1.5% and adding over 280 points to breach above the 18,000 area. The Hang Seng index climbed 1.4% (300 points) towards 21,800, supported by strong gains in information technology and consumer discretionary sectors. Glencore rallied in Hong Kong and hit a high at 18.36 but gave back earlier gains to finish the session at 12.40.
23 Sep 2015 08:59
Caixin’s China manufacturing PMI declined to 47.0 in September from 47.3 in August, missing analysts’ expectations of 47.5 and hitting a 6 ½ year low. The disappointing manufacturing data verified the recent slowdown of the Chinese economy and weighed on market sentiment. The Hang Seng index plunged over 550 points (-2.50%) towards 21,200, while the Shanghai Composite index declined over 2% to retest 3,100.
15 Sep 2015 09:15
Asian equity markets remained under pressure overnight. Market participants will be keeping an eye on today’s release of the ZEW economic survey expectations in Germany and the Eurozone, as well as the Eurozone’s trade balance in July and unemployment data for Q2 2015. In the UK, this morning’s key inflation data will draw investors’ attention.
14 Sep 2015 09:02
This week, the main focus will turn to the FOMC meeting on Thursday. The USD index has lost its upside momentum against the G10 currencies, retreating towards 95.0, as investors remain cautious about the timing of a US interest rate rise this year. We do not expect any big surprises from the Fed this week, as it is likely that the US Federal Reserve Bank will leave interest rates unchanged this time, possibly signalling that the beginning of a tightening policy is approaching.
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.
09 Sep 2015 08:55
Asian equity markets posted strong gains overnight, as risk appetite increased and market sentiment generally improved. The Nikkei index rebounded from recent losses and spiked over 7.7% (1340 points) towards 18,800, showing its biggest one-day gain since 2008. The Shanghai Composite index gained over 2.2% towards 3243, while the Hang Seng index rallied strongly over 900 points (+4.25%) towards 22,150.
08 Sep 2015 09:12
The USD index initially slid lower towards 95.50 this morning but recovered part of earlier losses and hovered around 96.0 against a basket of currencies. The softer USD provided strong support to most commodity prices. Germany’s exports remain solid following an increase of 2.4% m/m in July, beating expectations of a 1.0% rise. However, Chinese data remained fairly disappointing as exports declined 5.5% y/y in August.
07 Sep 2015 09:08
US markets are closed today for Labor Day, so we expect thin trading volumes across the global equity and commodity markets. Asian equity markets were mixed overnight. The People's Bank of China Governor Zhou Xiaochuan told G20 central bankers and finance ministers over the weekend that the turmoil in China's stock market is approaching an end.
03 Sep 2015 08:54
European equity markets rebounded strongly this morning as the DAX, CAC, IBEX and London equity benchmark indices rallied between 1.2% and 1.5% in early trade. We don’t expect any big surprises from the European Central Bank today, as recent momentum is that interest rates will be left on hold. However, all eyes are on ECB’s President Mario Draghi press conference.
01 Sep 2015 08:53
Asian equity markets remain under pressure as the Hang Seng Index and the Shanghai Composite index retreated 1.7% and 1.25%, respectively, overnight. Chinese economic data was fairly mixed as Manufacturing PMI dropped to 49.7 y/y in August from 50.0 in July, in line with expectations. However, the non-Manufacturing PMI figure was reported at 53.4 y/y in August.
28 Aug 2015 08:55
Crude oil prices rallied yesterday and WTI front month futures climbed 10.26% to end the session at $42.56/barrel, showing their best performance since March 2009. This morning, WTI futures extended gains towards $43 per barrel, while Brent front month futures rebounded towards $48 per barrel.
27 Aug 2015 09:05
There is a strong upside momentum across the global equity markets this morning. Asian equity markets reversed recent heavy losses and rebounded to climb higher overnight. The Hang Seng index rallied over 3.8%, adding nearly 800 points towards 21,900.
25 Aug 2015 09:49
This morning, European rebounded and posted strong gains in early trade. The CAC, DAX, IBEX and London equity benchmark indices reversed yesterday’s losses and rallied higher. The big surprise yesterday was the European currency as the EUR rallied strongly and hit a high at 1.1714
21 Aug 2015 08:43
Greek uncertainty continues to dominate the European equity markets, raising renewed concerns regarding the country’s economic stability. Last night, the Greek Prime Minister Alexis Tsipras announced his resignation, showing the way for possible early elections on 20th September 2015.
20 Aug 2015 08:54
Asian equity markets remained under pressure and extended sharp losses overnight as the Hang Seng index plunged over 450 points (-2.05%) towards 22,650. The gloomy macroeconomic picture for Chinese economy has spread concerns across the other global equity markets. European equities opened lower this morning.
23 Jul 2015 08:53
The Greek parliament approved bailout reform package after passing a crucial bill demanded by Eurozone as part of a bailout deal. The euro rallied strongly towards 1.10 against the USD this morning following the Greek approval. European equity markets climbed higher in early trade.
22 Jul 2015 09:01
European equity markets retreated sharply in early trade as investors remain cautious ahead of the Greek parliamentary vote this evening. There is increasing worries regarding Greece’s political uncertainty as a possible further conflict within Syriza could force the government into a minority position if Prime Minister Alexis Tsipras fails to gain sufficient support.
21 Jul 2015 09:05
The strong USD continues to weigh on market sentiment adding pressure to most commodity prices. WTI front month futures remained under pressure after hovering around the key level of $50 per barrel, while Brent futures have been trading sideways around $56.50 this morning.
10 Jul 2015 09:00
The Greek government submitted its reform proposals to Brussels ahead of European creditors’ deadline. European equity markets posted strong gains in early trade this morning amid hopes for a positive outcome at the upcoming Eurogroup meeting over the weekend. The euro surged higher and breached 1.11 against the USD, showing signs of upside recovery.
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.
08 Jul 2015 09:11
The Hang Seng index plunged over 2000 points overnight (-8.2%) towards 22,900 as concerns regarding Chinese’s economic stability weighed on market sentiment, prompting investors to sell-off. China’s Shanghai Composite Index also declined sharply, showing its biggest drop since 2007.