Markets take a U-turn after disappointing

22 January, 2019

After a positive start to the week, Asian equities fell today amid rising concerns over the global economic outlook. The market is currently being driven by the daily news feed. An example of this, is the caution observed over the latest revised growth estimates from the IMF. The fund lowered its growth expectation for the global economy by 0.2% for 2019 and 0.1% for 2020 to 3.5% and 3.6% respectively. This was the second downturn revision in three months, and we can still see further downgrades in near future if trade tensions escalate, the UK exits with a no-deal from the EU, or China’s economic growth drops more sharply.

Updates received from U.S.–China trade talks were not encouraging either. According to a Bloomberg report, the negotiations over intellectual property theft have gone nowhere. With only eight days left before China’s Vice Premier Liu He visits Washington to resume trade negotiations, any headlines related to trade talks will be market-moving.

Overall, we think the relief rally in global equity markets will be tested this week especially with earnings season kicking into higher gear with companies like Johnson & Johnson, IBM, United Technologies, and several airlines scheduled to post their Q4 results.   

In currency markets, the Australian and New Zealand Dollars are feeling most of the pressure as concerns over the global economy and China’s economic outlook grows. However, it remains to be seen what new measures China will take in order to boost sentiment.

British Prime Minister Theresa May unveiled her Brexit Plan B yesterday, and as expected it looked a lot like Plan A.  The fate of her alternative plan seems similar to the previous one and will not likely pass through the parliament. EU leaders also did not show a willingness to negotiate for a new deal. Despite these facts, Sterling held steady against the Dollar. Investors seem like they are still ruling out the possibility of a hard Brexit and believe the current dysfunction in UK politics will lead to at least an extension of Article 50, and possibly a new referendum. 

Source link  
Investors on sidelines ahead of weekend

Equity markets moved in different directions yesterday, as positive Chinese data failed to boost risk appetite. The S&P 500 slipped 0.23%...

China stimulus measures bearing fruit

Investors hoping for better-than-expected data from the world's second largest economy were not disappointed on Wednesday. China's economy...

Stock market rally takes breather

Stocks in Asia eked out gains during early trading even as the S&P500 eased off its six-month high, after disappointing results from Goldman...

Asian stocks feeding off strong start

European equities look set to attempt to follow the trend from Asian markets on Monday morning by starting the week off in the green, as risk...

EM currencies threatened

It has certainly been another eventful trading week for financial markets as global growth concerns, US-China trade developments and Brexit...

Another central bank turns dovish

The Reserve Bank of New Zealand (RBNZ) is the latest central bank to join the global trend of taking a U-turn. It was only last month when RBNZ Governor...

Apple shares tumbled nearly 2%

Apple shares tumbled nearly 2% on Monday despite the company unveiling a series of new services at its campus in Cupertino, California. The technology giant...

Asia joins Friday's sell-off

The selloff in US and European stock markets from Friday has spread across Asia at the start of the new trading week, as concerns over the health...

Recovery of emerging markets

The recovery that emerging markets have managed to build throughout the first quarter of 2019 is set to extend further after the downbeat...

In the past 24 hours Bitcoin has lost -1.25% and reached $5269.85809164. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -0.4259% and is now at $1.1296. Start trading and making money on Forex today.

In the past 7 days Ethereum has gained 1.9% and is now at $168.504649118. Have the most popular cryptocurrencies compared online 24/7.

Top Brokers offering Forex Market Analysis

Forex Currencies Forecasts

Top 10 Forex Brokers 2019

# Broker Review
5FIBO GroupFIBO Group85%