Market Insights & Analysis

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

15 Jan 2016 08:42
The upbeat mood on Wall Street failed to carry over to the Asian session as benchmark equity indices across the region ended the week on the back foot, capping what has been a volatile second week of the year. A choppy week for the yuan as the offshore exchange rate gave back more of the week’s earlier gains with moves overnight pushing the Chinese currency towards 6.6160 against the dollar. Another engaging day in terms of macro data, not that the majority seem to be paying any attention, with US data dominating the day’s releases.
11 Jan 2016 08:29
Another rocky start for Asian equity markets with mainland Chinese equity indices closing 5% lower during overnight trading as the nervous trading conditions and risk off approach by investors showed no signs of letting up. Despite the overall risk off mood permeating through Asian markets the offshore yuan exchange rate offered further indication of stability after the PBOC kept the daily fixing for the currency firm for a second straight session. The risk off appetite spurred demand for gold as the safe haven asset remained well supported around $1,105/oz early on today.
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.
07 Oct 2015 08:57
WTI front month futures extended gains for a fourth consecutive session, eyeing the key $50 per barrel level. The Energy Information Administration (EIA) said in its monthly outlook that US crude oil production fell 120,000 barrels per day in September compared to a month earlier. The API weekly oil inventories report showed yesterday that US crude oil inventories have shrunk by 1.2 million barrels for the week ending 2nd October.
06 Oct 2015 09:08
German factory orders dropped significantly by 1.8% m/m in August, versus expectations of a 0.5% rise. European equity markets reversed yesterday’s solid gains and retreated this morning as the DAX, CAC and IBEX fell slightly between 0.50% and 0.80%. The euro continues its consolidation mode, hovering around 1.12 against the USD.
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.
22 Sep 2015 09:00
The euro declined sharply for a third consecutive session today and dropped below 1.1200 against the USD, hovering around 1.1180. There was some relief in the markets regarding the Greek elections. However, market participants remain cautious ahead of this weekend’s elections in Catalonia, Spain, as the local government is looking to make this a separatism ballot with a possible clash with the Spanish national administration.
18 Sep 2015 08:54
The Federal Reserve held interest rates unchanged at the latest FOMC meeting, with Fed Chair Janet Yellen delivering a “dovish” message. The statement identified that the recent global economic and financial conditions may restrain economic growth and added further downside pressure on US inflation in the short-term. The USD index retreated towards 94.0 against a basket of currencies, remaining under heavy pressure.
16 Sep 2015 08:52
Asian equity markets rebounded strongly overnight. The Hang Seng index rallied by 2.50% towards 22,100, while the Shanghai Composite index climbed higher by 4.9% to retest 3,150. There is increasing volatility and nervous trading conditions as investors await key decisions from the FOMC meeting tomorrow. The USD index remains strong after hovering around 95.60 against a basket of currencies.
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.
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.
02 Sep 2015 09:06
The negative Chinese economic data weighed on market sentiment across the global equity markets yesterday, prompting further sell-off in global equities and commodities. Crude oil prices extended declines this morning as disappointing Chinese economic data, poor oil fundamentals and the stronger USD weigh heavily on market sentiment.
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.
26 Aug 2015 08:58
Asian equity markets extended declines overnight, remaining under heavy pressure. WTI front month futures have been hovering around $39 per barrel ahead of the release of the weekly EIA oil inventories data. The softer USD has failed to provide any support to base metal prices which have been under serious pressure amid concerns over Chinese slowdown.
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
24 Aug 2015 09:08
China’s financial crisis has rattled global equity and commodity markets this morning. There is a strong sell-off dominating global markets with Chinese stocks tumbling the most since 2007 as recent government support measures failed. The Hang Seng index plunged over 1150 points (-5.2%) towards 21,200, heading for its biggest drop since 2011.
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.
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.
20 Jul 2015 09:03
Precious metal prices remain in negative territory in early trade this morning. Gold retreated sharply to a 5-year low at $1086/ounce early in the session. The yellow precious metal has slightly rebounded and hovered around $1100/ounce.
03 Jul 2015 09:01
As the Greek bailout negotiations have been “on hold” until the country’s referendum on Sunday, attention turned to US employment data yesterday. We received mixed US employment indicators yesterday, which somewhat distorted the outlook for a possible US interest rate rise later this year.
02 Jul 2015 08:59
“Greece fatigue” continues to dominate global equity and commodity markets as there is still no conclusion to the debt crisis. The Greek Prime Minister Alexis Tsipras accused international creditors of blackmailing Greek voters ahead of Sunday’s referendum, just hours after he accepted most of the terms of the newly proposed reform plan with a handful of minor changes.
01 Jul 2015 08:48
Greece’s last minute appeal to international creditors for financial aid yesterday got rejected. Thus, the country became the first developed economy to default on IMF payment as the deadline expired yesterday. The IMF confirmed yesterday that the country has not made its scheduled 1.6 billion euro loan repayment to the fund, so economic conditions deteriorated.
30 Jun 2015 09:38
The heavy sell-off that dominated the global equity markets yesterday eased as there is little sign of contagion in European economies due to a possible Grexit as the euro held above 1.12 yesterday. Standard & Poor’s, the ratings agency, downgraded Greece to junk status, reporting there a 50% chance of Greece leaving the Eurozone.
26 Jun 2015 09:11
Another Euro-group meeting came to an end without reaching a deal yesterday. European Finance Ministers and the Greek government failed for a fourth time in a week to seal an accord. The ongoing uncertainty caused high volatility and dragged global equity markets lower.
25 Jun 2015 09:02
Deal or no deal? International creditors yesterday rejected another Greek proposal as the meeting of European Finance ministers ended without an agreement on Wednesday evening. Discussions are set to continue this morning. The euro has slightly rebounded this morning to retest 1.12 against the USD, however, European equity markets continue to remain under heavy pressure.
23 Jun 2015 08:44
Greece’s main stock exchange rallied 9% yesterday, showing its biggest increase since February, and outperformed the rest of European equities. Furthermore, yields on Greek government bonds declined amid hopes that the Greek government will reach a deal with its creditors this week in order to release bailout funds.
22 Jun 2015 08:45
Investors remain cautious ahead of the crucial Emergency Summit in Brussels today regarding Greece’s debt issues. Asian equity markets rebounded strongly overnight and posted strong gains. The upside momentum continued in European equities this morning which opened higher and recovered from sharp losses last week.