Market Review 27-08

Market Review 27-08

Spotify to Rally 30% as ‘Primary Platform’: MKM

By Shoshanna Delventhal

 

Spotify Technology SA, the world’s leading on-demand music streaming platform, will continue to outperform as it becomes the “primary platform” connecting music fans and artists, according to one team of bulls on the Street.

 

In a note to clients Wednesday, MKM Partners lifted its 12-month price target on Spotify shares by 23%, to $245 from $200, matching the most bullish views on the Street and reflecting a near 28% upside from Thursday morning.

 

MKM analyst Rob Sanderson also lifted his price target on Amazon by 20% on Wednesday, joining a growing group of bulls on the Street who expect shares of the e-commerce and cloud giant to exceed $2,000. The analyst lifted Alphabet Inc.’s (GOOGL) price target by 8.1% to $1,465, reflecting a 20% upside and implying a market capitalization of $1.02 trillion.

 

https://www.investopedia.com/news/spotify-rally-30-primary-platform-mkm/

 

 

Sterling stuck near 11-month lows vs euro

By Reuters Staff

 

The British pound slipped against the euro to within a whisker of its weakest since September 2017, hurt by a rally in the single currency and concerns about whether Britain can secure itself a trading deal with the European Union.

 

Sterling has had a tough August, whacked by mounting concerns Britain could crash out of the EU without new trading arrangements in place on its scheduled exit day in March next year.

 

“Fears of a ‘no deal Brexit’ fears are reaching fever pitch … Sterling has no support other than a bearish consensus and a low valuation,” said Kit Juckes, chief FX strategist at Societe Generale.

 

https://www.reuters.com/article/uk-britain-sterling/sterling-stuck-near-11-month-lows-vs-euro-idUSKCN1L90SE

 

 

NZD/USD May Fall on Fed Policy Bets, EU Revives Trade War Fears

By Daniel Dubrovsky

 

New Zealand Dollar Fundamental Forecast: Bearish

 

The New Zealand Dollar rallied during the first part of last week, boosted by stronger local retail sales data.

 

Similar to last week, the one ahead offers little in the way of domestic economic statistics that could alter near-term RBNZ rate expectations. Even if there was, they may not offer a lasting response to NZD as we saw with the retail sales. This is because the central bank was decidedly dovish at its interest rate announcement earlier this month.

 

Thus, the spotlight for what could impact NZD/USD and other Kiwi crosses may come from external factors. On this front, there are a couple of key US economic event risks. We will get the second estimate of Q2 GDP and the Fed’s preferred measure of inflation.

 

This opens the door for the greenback to potentially resuming its dominant uptrend since April as the markets slowly but surely price in that additional hike.

 

The sentiment-linked New Zealand Dollar could also be left vulnerable in the week ahead as EU foreign affairs ministers discuss trans-Atlantic relations and the Iran Nuclear Deal on Thursday.

 

Signs that the nation bloc could step up efforts to retaliate against Trump’s sanctions on Iran could fuel trade war fears. This may bode ill for stocks and thus the NZD.

 

https://www.dailyfx.com/forecasts?ref=SubNav#nzd

 

 

Twitter’s Stock May Rebound 9% Over the Short Term

By Michael Kramer

 

Twitter’s stock gapped lower following the quarterly results, falling to a technical support level around $31.90. Now shares are starting to turn higher and may rise by almost 9% back to technical resistance around $36.60. The relative strength index (RSI) has also started rising again, and that suggests bullish momentum is now moving back into the stock.

 

https://www.investopedia.com/news/twitters-stock-may-rebound-9-over-short-term/

 

 

The Canadian Dollar is a Bargain Buy as NAFTA Progress Looms and Chart Signals are Turning Bullish

By Joaquin Monfort

 

The Canadian Dollar is a bargain buy prospect on several counts including a looming breakthrough in North American Free Trade Agreement (NAFTA) talks and chart signals that now suggest a bullish outlook for the currency.

 

A partial resolution to the NAFTA dispute could be announced imminently, according to a Politico report, and although the deal is only expected to be a between the US and Mexico the Loonie could still gain some favour from it since markets might infer a Canadian deal also becomes more likely.

 

Other fundamental positives include expectations the Bank of Canada (BOC) will raise interest rates in October thanks to recent strong data and resilient oil prices.

 

Higher interest rates are likely to boost the Loonie because the are a draw for foreign investment due to the higher returns on offer, and thus increase capital inflows.

 

From a technical perspective, a strong downtrend favours more weakness for GBP/CAD and USD/CAD is also trading with a bearish bias, according to analysis from Scotiabank.

 

https://www.poundsterlinglive.com/cad/9767-canadian-dollar-remains-a-decent-bet-from-nafta-rub-off-and-technicals

 

 

Oil up as U.S. sanctions on Iran cloud supply outlook

By Christopher Johnson

 

Oil prices rose on Friday, supported by signs that U.S. sanctions on Iran are already reducing global crude supply.

 

“Third-party reports indicate that Iranian tanker loadings are already down by around 700,000 bpd in the first half of August relative to July, which if it holds will exceed most expectations,” U.S. investment bank Jefferies said on Friday.

 

“We expect that by Q4 the market will be dealing with either undersupply, dwindling spare capacity – or both,” it added.

 

Market sentiment was cautious, however, after talks between U.S. and Chinese officials aimed at resolving an escalating trade dispute ended on Thursday with no major breakthrough.

 

Instead, both countries activated another round of tariffs on $16 billion worth of each other’s goods.

 

Traders kept an eye on the North Sea, where workers on three oil and gas platforms plan to strike next month.

 

https://www.reuters.com/article/us-global-oil/oil-up-as-u-s-sanctions-on-iran-cloud-supply-outlook-idUSKCN1L904B

 

 

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