Market Review 27-09

Market Review 27-09

JP Morgan sees ‘meaningful’ pullback for Facebook shares after Instagram co-founders resign

By Tae Kim

  • Facebook shares are likely to fall significantly in the short term due to the departure of two key executives, Instagram co-founders Kevin Systrom and Mike Krieger, according to J.P. Morgan.
  • “We look for additional color in coming days and weeks, but in the near-term, we expect FB shares to come under meaningful pressure from the departures,” J.P. Morgan analyst Doug Anmuth says.

https://www.cnbc.com/2018/09/25/jp-morgan-predicts-a-meaningful-drop-for-facebook-after-instagram-co-founder-departures-shares-fall-3percent.html

 

Amazon’s stock could hit $3,000, or nearly $1.5 trillion market cap, in two years, Jefferies says

By Fred Imbert

Amazon shares could surge to $3,000, or $1.46 trillion in market value, by 2020, driven largely in part by strong growth in the company’s Prime, cloud and advertising businesses, an analyst at Jefferies suggested Tuesday.

Analyst Brent Thill said in a note that Amazon’s core retail business is seeing momentum accelerate driven by its Prime service and “best-in-class fulfillment capabilities,” while Amazon Web Services has become the “de facto standard for public cloud.” Advertising, meanwhile, continues to drive higher margins and expand the company’s already massive total addressable market.

Thill also hiked his 12-month price target to $2,350 from $2,185, implying 21.5 percent upside from Monday’s close of $1,934.36.

Amazon’s shares have more than doubled in the past year, raising overvaluation concerns. But Thill says Amazon is still undervalued despite its monster gains this year.

https://www.cnbc.com/2018/09/25/amazon-could-reach-3000-per-share-in-two-years-jefferies-says.html

 

EURGBP Technical Outlook: DownTrend Remains in Place

By Nick Cawley

Over the last two days the technical picture has turned slightly more bearish with the pair now trading in or just below the 20- and 50-day moving average, a negative set-up. In addition, the 38.2% Fibonacci retracement of the December 2016 – August 2017 move cuts across at 0.89240. If this is broken the September 20 low of 0.88478 comes into play just ahead of the 200-day moving average at 0.88370.

Euro traders will be closely watching developments in Italy over the next two days as the coalition government continues to argue with the Italian finance minister over the 2019 Budget. 10-year Italian bond yields are creeping back up towards 3.0% (yields rise as prices fall) and may well trade back up to their recent high at 3.25%, exerting downward pressure on the euro. The Five Star Party have already said that they will block the Budget unless funds are made available for their social welfare spending program.

https://www.dailyfx.com/forex/market_alert/2018/09/26/EURGBP-Technical-Outlook-DownTrend-Remains-in-Place.html

 

Netflix’s Stock May Rise by 10% Ahead of Results

By Michael J. Kramer

Netflix Inc.’s stock (NFLX) fell hard after the company reported less than stellar subscriber additions in July, causing shares to plunge by over 20% from its highs. But shares have rebounded by over 17% since the middle of August. Now technical analysis is suggesting the stock rises by as much as 10%.

Options traders are bullish on the streaming media company too and see the stock rising by over 5% by the middle of October. The company is due to report third-quarter results on October 16.

The uptrend and the resistance level have created a bullish technical pattern known as an ascending triangle. Should the stock price rise above $375, as the pattern suggests, it would signal a technical breakout, resulting in the stock rising to $405, an increase of about 10% from its current price around $370.

The average price target on the stock has been rising and is at $378, which is 6% higher than the previous target at the start of July.

https://www.investopedia.com/news/netflixs-stock-may-rise-10-ahead-results/

 

New Zealand Dollar Rises as Business Confidence Recovers ahead of Latest RBNZ Update

By James Skinner

The New Zealand Dollar advanced against rivals Wednesday after the latest Australia & New Zealand Banking Group (ANZ) survey showed business confidence snapping a six-month decline in September, ending a period of deterioration that had stoked concern for the Kiwi economic outlook.

New Zealand’s economy grew by 1% during the three months to the end of June which, up from 0.5% at the beginning of the year, was more than twice the 0.5% expansion the Reserve Bank of New Zealand (RBNZ) forecast.

However, despite this being above forecasts, the surprisingly strong growth seen in the second-quarter was still below the so-called “potential” of the economy. It is also expected to slow during the months ahead.

“We expect the NZD to be a notable underperformer over the coming quarters, as low inflation and sub-potential GDP growth support the prospect of RBNZ rate cuts over the coming year”, says Hamish Pepper, a currency strategist at Barclays.

Growth, interest rate and NZD outlook remain bearish say analysts.

https://www.poundsterlinglive.com/nzd/9987-new-zealand-dollar-rises-as-business-confidence-recovers-ahead-of-latest-rbnz-update

 

GBPUSD Outlook Buffeted By Brexit News

By Nick Cawley

This weekend the annual Conservative Party conference kicks-off against a background of acrimony and Brexit divisions. The Prime Minister is expected to repeat her view that the much-maligned Chequers Brexit plan is the only way forward to an audience split between believers and dissenters. PM May needs to reassert her authority over the party and present a unified plan to the EU if there is to be any hope of a Brexit breakthrough. If the Prime Minister is unable to do this, rumors will strengthen of a leadership contest, heaping pressure on Sterling.

https://www.dailyfx.com/forex/market_alert/2018/09/26/GBPUSD-Outlook-Buffeted-by-FOMC-Rate-Outlook-and-Brexit-News.html

 

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