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.
16 Nov 2015 08:59
Asian and European equity markets remained under pressure and posted renewed losses today as the attacks in Paris, France, on Friday caused high uncertainty across global markets. The tragic events limited any risk appetite and caused nervous trading conditions. Japan’s economy contracted by 0.8% y/y in Q3 2015, following a revised 0.7% drop in Q2 2015, missing analysts’ expectations of a -0.2% decline.
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.
10 Nov 2015 08:46
Further signs of weakness in China prompted investors to selloff. The Hang Seng index plunged over 300 points (-1.43%) towards 22,400 while the Shanghai Composite Index slid lower by 0.20% towards 3,640. China’s CPI rose 1.3% y/y in October compared to 1.6% in September, missing analysts’ expectations of a 1.5% rise, showing the lowest level since May 2015.
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 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.
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.
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.
21 Sep 2015 08:47
The Greek left-wing party Syriza secured a clear victory -for a second time within a year- and won the snap elections on Sunday. Syriza leader Alexis Tsipras reported that “this victory belongs to the people and those who dream of a better tomorrow and we wll achieve it with hard work”. The euro hovered around 1.13 against the USD this morning.
17 Sep 2015 09:09
It is decision time for the US Federal Reserve. It seems that global markets are going into today’s FOMC’s meeting with a “dovish” mentality. We may be surprised with an interest rate hike despite the recent tepid US economic data. The USD index has been under some pressure ahead of the announcement, retreating towards 95.0 against a basket of currencies in early trade.
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.
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.
04 Sep 2015 08:55
ECB’s Press conference yesterday proved to be very dovish as President Mario Draghi signalled to market participants that the ECB could expand its current stimulus if the slowdown across financial market continues to weigh heavily on economic growth. The euro retreated sharply to hit a 2-week low at 1.1087, while European equity markets declined sharply in early trade this morning.
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.
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.
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.
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.
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.
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.