Market Insights & Analysis

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

08 Dec 2015 08:20
Chinese trade data released overnight painted a bleak outlook for the world’s second largest economy, prompting another run on Asian stocks with the miners in London under renewed pressure. Mainland Chinese stocks led the charge lower overnight with both the CSI 300 and Shanghai Composite losing between 1.7%-1.9%. Front month Brent futures sank to their lowest level since the financial crisis as the price per barrel hit $40.60 on selling that dominated the entire day.
13 Oct 2015 08:29
Chinese trade data released overnight was cause for further investor unease as signs of slowing growth saw Asian equity markets trade under pressure. It’s been a turbulent H2 2015 so far for the Chinese economy as policymakers in Beijing pull out all the stops in an effort to reverse the steady decline in almost all major indicators and trading conditions aren’t expected to ease during the final quarter of the year. As if to prolong the uncertainty surrounding the path US interest rates will take when the Fed do eventually decide to raise them, a senior Fed policymaker has voiced her concerns regarding a rates rise that comes too soon.
10 Aug 2015 08:26
Asian equity markets started the week on a strong footing despite data released over the weekend continuing to pile on the pressure, presenting policymakers with significant headwinds. Athens is nearing the conclusion to its €86bn third bailout package with creditors with the hopes of a deal being reached this week ahead of an August 20th deadline when Greece must make a $3.2bn loan repayment to the ECB. Spot gold prices have started this week on a firm footing as weaker than expected Chinese inflation and trade data prompted some haven demand.
05 May 2015 14:04
Global equity markets experienced yet another tentative trading session as May trading seems to be off to a shaky start. The euro traded under pressure for a third straight session today, slipping back towards 1.1066 against the dollar during intraday trading early on before weaker than expected economic data out of the US prompted a reversal and supported the single currency back up towards 1.1160.
22 Apr 2015 08:20
Another strong session for Asian markets overnight with Japanese benchmark indices pushing to a fresh fifteen year high. Chinese investors were seemingly unfazed by the first default of a SOE as mainland Chinese stocks rallied to a new year-to-date high, indicative of the renewed optimism shared by market participants in the wake of fresh central bank stimulus. The dollar index gained for a second straight session yesterday as it made steady progress recovering some of the previous week’s steep losses.
15 Apr 2015 13:13
After yesterday’s shaky session for European equity markets today’s session saw stocks push to a fresh fourteen year high with the majority of the gains added in the morning, ahead of the ECB’s rate decision. Equity markets started the week on a positive footing after unimpressive Chinese trade data released on Monday and softer than expected industrial production data released overnight increased the prospects that Beijing would also soon step up its monetary easing efforts in a bid to support a faltering economy.
08 Apr 2015 08:02
The IMF has warned of a prolonged period of lower growth, reigniting fears that the world economy will face considerable headwinds over the coming years which would present significant obstacles to governments and policymakers. Figures published yesterday by the ECB covering the first month of its QE programme indicated eurozone central bankers purchased government bonds to the tune of €52.5bn. Asian stock indices rallied higher overnight, building on the previous session’s gains with the Hang Seng leading the pack, surging over 2.5% higher overnight.
09 Mar 2015 08:07
Asian equity benchmark indices started the week on the back foot with most major markets erasing much of the previous session’s gains as investors continued to mull over Friday’s US jobs data. The surprise increase in Friday’s nonfarm payrolls, which rose by 295K in February against expectations of a lower 235K increase, prompted investors to speculate that a US rates rise was on its way. The US dollar index rallied to a fresh 12-year high on Friday, gaining 1.26% against a basket of major currencies as it touched levels towards 97.726.
13 Jan 2015 08:06
Asian markets experienced further risk aversion during overnight trading as sliding oil prices struggled to find a floor, depressing appetite for risk assets across the region. The yen traded towards a four week high, trading towards 117.74 against the dollar before erasing these early losses as we neared the European open.
08 Dec 2014 15:44
The euro dropped to a two and half year low today after comments from ECB official Ewald Nowotny suggested that bond buying could be integral to addressing the ongoing weakening of the eurozone economy. European equity markets erased some of last week’s late gains today as disappointing Asian data released earlier this morning prompted investors to embark on a round of profit taking. Chinese economic data compounded the bearish outlook, with November trade data released early this morning signalling a significant deterioration in both export and import growth.
07 Nov 2014 08:12
The dollar index continued its upward march yesterday as the greenback gained 0.64% against a basket of major currencies to end the session just above 88.00, reaching a five and a half year high. Three month LME nickel and copper prices were on track for weekly losses after selling pressure earlier in the week saw previous gains retrace as key areas of support were tested. Spot gold prices are set to close lower for the third straight week, on track to extend declines by as much as 3.0% this week as investment demand dissipates.
08 Aug 2014 08:19
Chinese trade data released overnight presented a record trade surplus as export growth continued to accelerate throughout July. Brent futures rose above $106/bbl for the first time this week in early morning trade as President Obama authorised air strikes in Iraq, sending front month prices towards $106.85/bbl on supply concerns. Copper prices remained on track to close lower for a second straight week after Chinese trade data showed imports of the red metal fell to their lowest levels since April last year.
10 Jul 2014 08:40
After a tentative few sessions Wall Street stocks lifted higher yesterday, as details from the Fed minutes calmed market participants and sparked renewed appetite in risk assets. Chinese stocks headed lower for a second consecutive session as trade data came in weaker than expected.
08 May 2014 07:57
Spot gold prices dropped back below $1,300/oz yesterday, posting a 1.4% decline after Yellen’s dovish testimony in front of the Joint Economic Committee. The bullish sentiment carried over into the Asian session, with most major benchmark indices in the region heading higher. A busy day for economic data, with market participants anticipating the release of the BOE and ECB base rates before focus switches to US jobless claims later this afternoon.
19 Mar 2014 08:25
US markets posted steady gains ahead of the FOMC meeting as the dollar index remained under pressure, struggling to breakout significantly above 79.420. Asian equity markets faltered during overnight trading with Japanese equity markets posting mixed results after data showed the trade balance exceeded analysts’ expectations despite closing considerable ground after last month’s drop. Chinese stocks fell on property market concerns and a weaker yuan as the collapse of a private real estate developer increased concerns of further defaults as the economy slows.
10 Mar 2014 08:20
Asian equity markets started the week on the back foot as weaker than expected Chinese and Japanese data dampened investor sentiment. Japanese data compounded the bearish undertones in Asian markets as fourth quarter annualised GDP growth trailed its estimate, coming in at 0.7% q/q against the 0.9% q/q expectation. European markets have followed Asian indices lower on the open and as investors grow wary of rapidly rising valuations in recent months we may see a market correction on long term profit taking.
07 Feb 2014 07:51
US markets rebounded yesterday, spurred by a decline in initial jobless claims and better than expected corporate earnings. Chinese stocks edged higher overnight as markets reopened after the New Year holidays, carrying over positive investor sentiment from the US session. The euro jumped towards 1.3620 yesterday after the ECB left monetary policy unchanged, much to the disappointment of investors who had hoped for further action as the threat of deflation loomed.
27 Jan 2014 08:11
Asian equity markets dropped significantly lower as a growing Japanese trade deficit sent local markets plummeting for the third straight session while emerging markets in the region also faced a selloff from jittery investors ahead of the two day FOMC meeting later this week. Chinese markets struggled to hold on to Friday’s gains during overnight trading, leading to a reversal in benchmark indices as caution prevailed ahead of both the FOMC meeting and Lunar New Year celebrations later this week.
10 Jan 2014 08:20
A mixed session for Asian equities as investors hold out for key data releases later today with Japanese stocks managing to end the day in positive territory while mainland Chinese stock indices slip lower. Major US equity indices ended the day largely unchanged yesterday despite better than expected initial jobless claims and a marginally improved Bloomberg weekly consumer comfort index. China’s imports accelerated to their highest level since July 2013, supporting the view that domestic demand remained on track to support economic growth.
09 Dec 2013 08:44
Asian markets rallied significantly higher as markets continue to absorb last week’s bullish US and Chinese data. Chinese trade data released over the weekend points towards recovering export growth as global demand gradually recovers. European equity indices have opened higher this morning as the positive sentiment from the Asian session carries over into European trading.