Market Review 12-11

Market Review 12-11

Forex News

Breaking News: EUR/USD falls fast below 1.1300, the former double-bottom, on USD strength

From: FXstreet.com

The EUR/USD dropped below the former double-bottom of 1.1300. Cascading stop-losses sent the world’s No. currency pair down to 1.1268 in a quick movement. The pair is trading at the lowest level since June 2017, a 17-month low.

1.1235 is seen as the next downside target for the EUR/USD, followed by 1.1220. Above 1.1300, resistance awaits at 1.1330.

The US Dollar is gaining ground, extending the moves seen last week. The Federal Reserve maintained its hawkish stance last week. While Fed Chair Jerome Powell and his colleagues left the interest rate unchanged, they left the door wide open to a rate hike in its December meeting.

Also, concerns about Brexit also have an impact. Reports about a sharp disagreement in the UK government weighs on the Pound and sentiment and also helped push the EUR/USD over the critical line.

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Macron Says the Euro Is Not Yet an Alternative to U.S. Dollar

From: Bloomberg.com

French President Emmanuel Macron said that the euro is not “a clear alternative” to the dollar thanks to the U.S. currency’s international “strengths.”

“Until now, we fail to make the euro as strong as the dollar,” Macron, speaking English, said in an interview with CNN broadcast on Sunday. “We made a great job during the past years but it’s not yet sufficient.”

For the French president, European corporations and entities are too dependent upon the U.S. currency. “This is an issue of sovereignty for me. So that’s why I want us to work very closely with our financial institutions, at the European levels and with all the partners, in order to build a capacity to be less dependent from the dollar,” he said.

“It doesn’t mean to be opponents — but I think for the stability of the global order, you’ll need a strong currency like (the) dollar, but you need some alternatives. Euro has to be one of these alternatives, which means we have to better enhance our financial structures and the financing of our players at the euro-zone level,” Macron said.

Macron said the Chinese currency was a de facto alternative to the greenback, “not at the global level but for a certain region.”

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Japan PM Abe wants to unleash even more fiscal stimulus

From: FXstreet.com

During a speaking event at the Council on Economic and Fiscal Policy (CEFP), Japan’s Prime Minister Shinzo Abe stated that he wants to see further stimulus for the Japanese domestic economy in an effort to push the economy higher.

Key highlights

Abe wants even further stimulus measures for the Japanese economy.

H1 2019 spending needs to be driven higher.

Abe announced the measures at the CEFP.

Size and details of the pending spending package are unknown.

Abe has asked Economy Minister Motegi to focus on public works spending.

Economy Minister Toshimitsu Motegi: “The prime minister asked me to take firm measures to ensure that our economic recovery continues. He also said the public works spending program expected at the end of this year should be compiled with this point in mind.”

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Stock Market News

Big Tech’s FinServ Moves Prompt EU Regulatory Probe

From: PYMNTS.com

Moves on the part of Amazon and Google to enter the financial services market is prompting European financial regulators to mull whether or not the tech companies need to be supervised.

According to a report in the Financial Times citing Olli Rehn, governor of Finland’s central bank and a member of the European Central Bank’s governing council, the issue of tech companies entering the financial services industry has resulted in a “very lively discussion by financial supervisors and central banks in Europe.” The comments were made at the Financial Times Middle East Banking Forum being held in Dubai. It was well received by senior bankers, reported the paper, noting many have complained that it’s not an even playing field when competing against technology companies. The report noted it could also mark a new fight between tech companies and European regulators, which have been going after them over data breaches and to get more taxes out of the tech giants.

Rehn was asked if the ECB was mulling regulation for the tech companies that have entered financial services and said in response: “we see big tech is moving in there,” adding that it was “currently a matter for discussion among financial supervisors,” reported the Financial Times.

The comments come as the big tech companies in the U.S. including Amazon, Google, Facebook, and Apple have been entering the financial services market by supporting digital payments and launching other services. Tencent and Alibaba in China are also leaders in digital payments and are expanding into financial services as well. Earlier this year financial regulators in the EU opened up banking to FinTechs, requiring lenders to provide access to accounts of customers that authorized third parties to have access. European banks are concerned that U.S. and Chinese technology heavy-hitters will enter the best parts of the financial services market and not face the same regulation to which they are subject.

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Asia stocks lower amid growth worries; oil rebounds

From: Reuters.com

Asian shares drifted lower on Monday as signs of softening demand in China rekindled anxiety about the outlook for world growth, but Saudi Arabia’s plans to cut production helped to halt a slide in oil prices.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.07 percent, trimming earlier losses on a bounce in Chinese shares, but struggling to break into positive territory.Australian shares added 0.13 percent, while Japan’s Nikkei stock index gained 0.11 percent.

A combination of weak factory-gate inflation data in China and low oil prices weighed on global stocks on Friday, dragging MSCI’s gauge of global stocks to its worst day in two weeks. The index was last 0.09 percent lower.

Kevin Lai, chief economist for Asia ex-Japan at Daiwa Capital Markets, said there were genuine concerns from an equity market perspective about China’s economic growth in general and its significant debt burden in particular.

“There’s no way the economy can really can get back on a nice recovery path unless they can seriously compress the debt significantly … all this deleveraging we’ve been talking about hasn’t really delivered any results,” he said.

E-commerce giant Alibaba Group Holding Ltd added to the uncertain outlook in China, recording the slowest-ever annual growth in sales for its annual “Singles’ Day” event,.

Its sales outlook has weakened amid rising trade tensions between China and the United States that have taken a bite out of China’s economy.

An index tracking consumer staples firms in China was 0.95 percent lower, even as the blue-chip CSI300 index rebounded from last week’s string of losses to gain 0.68 percent.

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Apple was the top-selling mobile phone brand on Alibaba platforms during Singles Day, beating Chinese rivals

From: CNBC.com

  • Apple was the top-selling mobile phone brand during Alibaba’s record-breaking 24-hour Singles Day shopping event.
  • Chinese players Huawei and Xiaomi were second and third, respectively.
  • Alibaba’s annual event, which is also known as “Double 11” because it falls on Nov. 11 or 11/11, raked in record gross merchandise value of 213.5 billion yuan ($30.8 billion).

 
Apple was the top-selling mobile phone brand during Alibaba’s record-breaking 24-hour Singles Day shopping event, beating its Chinese rivals.

Alibaba released a list of products in various categories that had the highest gross merchandise value (GMV), or sales via the e-commerce giant’s various platform. Apple topped the list in the mobile phone category, but Alibaba did not release specific figures on the number of units sold or the total GMV brought in by Apple.

The U.S. technology giant was one of the 237 brands that surpassed 100 million yuan ($14.36 million) in sales during Singles Day.

Alibaba’s annual event, which is also known as “Double 11” because it falls on Nov. 11, raked in record GMV of 213.5 billion yuan ($30.8 billion). In 24 hours, thousands of brands put massive discounts on their products.

The figures provided by the Chinese firm did not provide details on what kind of iPhones were purchased. Huawei, China’s largest smartphone maker by market share, recently overtook Apple to move to second place globally. It was the second-highest-selling vendor on Alibaba’s platforms during Singles Day. Xiaomi, followed. Samsung, which has been weak in China for some time, was in eighth place.

Apple has seen a recovery in the China market in recent quarters after suffering hard times in the world’s second-largest economy. In the quarter that ended in September, Apple saw Greater China revenues rise 16 percent year-on-year.

“It’s a positive sign for Apple, because normally Xiaomi or Huawei has been the top brand. This shows the Chinese smartphone users are maturing fast and they are looking to buy more high end devices, which is a good sign not only for Apple but other brands,” Neil Shah, research director at Counterpoint Research, told CNBC by phone on Monday.

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Cryptocurrency News

Colorado Regulators Take Action Against Four ICOs

From: Investing.com

The latest crackdown by Colorado’s “ICO Task Force” against Bitcoin Investments, Ltd, PinkDate, Prisma and Clear Shop Vision Ltd. brought the state’s total number of cease-and-desist orders against crypto startups to 12, according to CoinDesk.

“We want to ensure that the state’s securities market and the investors that operate within it are protected from unscrupulous actors that are taking advantage of the enthusiasm surrounding this field to perpetrate fraud and in some cases outright theft,” Colorado Securities Commissioner Gerald Rome told CoinDesk in an interview.

“There are many companies in Colorado that are working hard to conduct their ICOs the right way, and we are eager to continue working with them to build a regulatory framework for the industry as it relates to securities,” Rome added.

Earlier this week Texas issued emergency cease-and-desist orders to crypto mining firms based in Australia and Canada.

The report came after the U.S. Securities and Exchange Commission (SEC) charged Zachary Coburn, the founder of crypto token trading platform EtherDelta, with running an unregistered securities exchange last Friday.

The SEC said that EtherDelta allowed users to trade Ethereum-based tokens without registering accounts.

Citing people familiar with the matter, CoinDesk said at the time that this might be the first of many legal actions to come against crypto token exchanges. The article added that this is because such trading platforms have become an important priority for the agency’s enforcement division.

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