Trade war gets real; Markets slide; Mexican peso wobbles
By Ivana Kottasová
The Mexican peso went on a roller-coaster ride after left-wing leader Andres Manuel Lopez Obrador’s apparent victory in the country’s presidential election.
The currency gained as much as 1% against the dollar when exit polls and initial results indicated Lopez Obrador would win. But it then reversed its course and was trading roughly 1% lower by early Monday.
Investors can’t figure out what to make of the new president, including his economic policies and his future relationship with the United States.
EUR/USD Forecast: German jitters push the pair lower within the wedge
By Yohay Elam
The EUR/USD is on the back foot once again, trading below 1.1650 and it’s mostly around Germany. On Friday, Chancellor Angela Merkel came home from Brussels with an agreement on migration and the news sent the Euro up. It had seemed that her sister Bavarian CSU party was on board. However, CSU leader Horst Seehofer threatened to resign on Sunday amid dissatisfaction with the deal.
The pair is also dropping due to fresh concerns about trade. The US is set to impose tariffs on $50 billion worth of Chinese goods on Friday and the world’s second-largest economy is on course to retaliate. The lack of any resolution sent Asian equities lower and triggered a risk-off environment which is beneficial to the US Dollar against most currencies, with the exception of the Japanese yen. US President Donald Trump called on OPEC to produce more oil. This interventionist comment did not help alleviate trade tensions.
Morgan Stanley’s Stock May Fall 8% Further
By Michael Kramer
Shares of Morgan Stanley (MS) are already down nearly 10% for 2018, and almost 20% off their March highs. But the outlook for the stock may be even bleaker, with some traders betting shares of the investment bank fall another 8% by the middle of October. If that happened, the stock would be down nearly 27% from its intraday highs of $59.22 on March 13.
The technical chart suggests the stock has further to fall as well, and implies the stock falling by a high amount over the coming weeks. Adding insult to injury, of the 18 biggest banks tested in the Federal Reserve’s annual stress test, 15 banks were allowed to raise their payouts, while three had to leave them at last year’s levels. Morgan Stanley was one of the three.
Apple’s Stock May Rise 8% on Strong Growth
By Michael Kramer
Apple Inc.’s (AAPL) stock has put together a solid 2018, with shares rising by just over 9%—easily topping the S&P 500’s rise of only 1.7%. But the outlook for the stock may be about to get much brighter. The technical chart suggests that shares of the company may rise by another 8% in the coming weeks.
Analysts are looking for the company to report a strong fiscal third quarter when posting its results at the beginning of August. Additionally, analysts have been pushing their average price target on the stock higher in recent months, and now see the stock climbing by roughly 7.5% to $199, from its current price of around $185.
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