Market Review 01-11

Market Review 01-11

Forex News

Sterling shines on report Brexit deal on financial services sealed

From: Reuters.com

The British pound jumped on Thursday on a Times report that Prime Minister Theresa May has struck a deal with Brussels that would give UK financial services companies continued access to European markets after Brexit.

Sterling firmed as much as 0.6 percent against the dollar in Asian trading hours following the report by the Times.

British and European negotiators have reached tentative agreement on all aspects of a future partnership on services, as well as the exchange of data, the British newspaper reported, citing government sources.

“It is still tough to make a directional call on the pound as both optimistic and pessimistic headlines keep flowing around. But I do expect a last minute deal to be clinched before the EU summit in December,” said Sim Moh Siong, currency strategist at Bank of Singapore.

The pound was last traded at $1.2849, up 0.62 percent on the day. It has lost 3 percent versus the dollar over the past three weeks as markets worried over whether Britain would secure an orderly exit from the European Union.

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A tricky time lies ahead for EUR/USD as November begins

From: Forexlive.com

The overnight low touched 1.1302, coming close to the year’s low of 1.1301 and failing to break reported barrier options at 1.1300. For sellers, it’s a case of “close but no cigar” just yet. Despite the rebound in price today, buyers are not in the driver’s seat. That still belongs to sellers as price continues to hover below the key hourly moving averages; indicating that near-term bias remains bearish.

The pair has been struggling to get above the 100-hour MA (red line) as sellers remain defiant to maintain the near-term bearish bias and that will be a key level to eye in the session ahead. November promises to be a tricky time for the pair fundamentally and right now we’re also at what can be construed as a technical crossroad.

The move towards the 1.1300 handle overnight now starts to form a double-bottom pattern if put together with the August low and technically, it’s a good setup for a bounce – provided that the near-term levels start to break higher as well. And that is where the hourly chart comes in handy; focus on the two key hourly moving averages.

However, fundamentally the euro continues to struggle as Italy’s debt/budget situation is still not sorted out with the deadline for Italy to respond to the European Commission being 13 November. Then, we have the case of faltering economic data from the Eurozone as growth continues to flag heading into Q4. That’s also weighing on the single currency.

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Stock Market News

Chinese stocks rise on stimulus bets as yuan gains on fixing

From: Bloomberg.com

Chinese stocks kicked off the month on a positive note, with traders encouraged by signs that officials will increase stimulus to support the nation’s slowing economy. The yuan jumped after the central bank set the fixing at a stronger-than-expected level.

The CSI 300 Index rose 0.7 percent Thursday, paring a rally of as much as 2 percent in the final hours of trading. It still marked the gauge’s first three-day rising streak in more than two months. Brokerages jumped, while technology stocks were among the best performers onshore and in Hong Kong. The Hang Seng China Enterprises Index jumped 1.7 percent. The yuan jumped 0.4 percent to 6.9497 per dollar.

China needs to take timely steps to counter the increasing downward pressure on economic growth, according to a statement from a Politburo meeting Wednesday chaired by President Xi Jinping. Separately, securities regulators have asked brokerages to help relieve liquidity pressure for listed private companies, the Securities Times reported, without specifying where it got the information.

“It takes time to restore market confidence,” said Zhang Gang, a Shanghai-based strategist with Central China Securities Co. “Some investors remain quite cautious on what’s lying ahead so they chose to pocket gains while they still can.”

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AIG earnings miss, Revenue beats In Q3

From: Investing.com

AIG (NYSE:AIG) reported third quarter earnings that missed analyst’s expectations on Wednesday and revenue that topped forecasts.

The firm reported earnings per share of $-0.34 on revenue of $12.29B. Analysts polled by Investing.com expected EPS of $0.12 on revenue of $12.24B. That compared to EPS of $0.57 on revenue of $11.83B in the same period a year earlier. The company had reported EPS of $1.05 on revenue of $11.64B in the previous quarter.

For the year, AIG shares are down 30.7%, under-performing the S&P 500 which is up 1.04% year to date.

AIG follows other major Financial sector earnings this month

On October 12, JPMorgan (NYSE:JPM) reported third quarter EPS of $2.34 on revenue of $27.82B, compared to forecasts of EPS of $2.26 on revenue of $27.44B.

Bank of America (NYSE:BAC) earnings beat analyst’s expectations on October 15, with third quarter EPS of $0.66 on revenue of $22.78B. Investing.com analysts expected EPS of $0.62 on revenue of $22.62B

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Cryptocurrency News

New SEC Commissioner briefed on Bitcoin ETF in October meeting

From: Coindesk.com

The newest commissioner with the U.S. Securities and Exchange Commission met with representatives from money manager VanEck and blockchain startup SolidX earlier this month to discuss a bitcoin-based exchange-traded fund (ETF).

Commissioner Elad Roisman, who took office in September, met with Dan Gallancy and Dimitri Nemirovsky at SolidX, Laura Morrison and Kyle Murray from the Cboe and Adam Phillips from VanEck to discuss a rule change proposal the companies submitted as part of an effort to launch a bitcoin ETF, according to a document dated October 9.

The ETF’s proponents shared a similar presentation with Roisman that they had previously presented to the SEC, noting that if approved, the ETF share price will be roughly $200,000, or 25 bitcoin per share. The Trust holding the bitcoin will also be insured against the loss or theft of the bitcoins.

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