While
we are still encountering quite a subdued trading atmosphere, where major stock
markets are in general struggling to find their direction, we are not facing
the type of selling pressure that should worry people that there is some
serious distress in the equity markets. It does remain difficult to pinpoint
whether trade war concerns, or the recent selloff in stocks like Amazon, are
driving the market volatility but there is some room to side with the latter.
Another
tweet from President Trump
reinforcing his negative view on Amazon sent the US stock markets on another
volatile ride overnight. It does not appear that trade tensions between the US
and China are driving the price action this week.
The
general consensus is that a trade war will be of no benefit to anyone, which
indicates why investors are not reacting that sensitively to the ongoing
headlines between Beijing and Washington. Beijing has, as you would expect,
condemned the news that the United States published a list of over 1000 Chinese
products that it plans to hit with a 25% tariff, but it has not created much of
a reaction in the financial markets as it stands.
There
has been just as muted of a reaction in the currency markets, where it can be
said that many currencies are not reacting as heavily to the ongoing shifts in
sentiment for the equity markets as you would usually expect in a period of
higher volatility. This can be seen as another reason to suggest that trade war
concerns are not driving the direction of the markets, and that it is the
selloff in corporations like Amazon that is behind the erratic behaviour in
stock markets.
If
investors were significantly concerned that there was a risk of a trade war,
currencies like the Japanese Yen and the Swiss Franc would be performing much
stronger than they have over recent trading sessions. Emerging market currencies like the Malaysian
Ringgit, Thai Baht, Indonesian Rupiah and even the Chinese Yuan itself are, on
the other hand, outperforming what you would expect if there were fears that a
trade war is upon us.
GBPUSD attempting
4 days of consecutive gains
The
British Pound appears to be attempting its fourth day of gains against the US
Dollar during early Wednesday trading, with the Sterling receiving support
after the UK manufacturing survey for March exceeded expectations yesterday. As
long as the GBPUSD maintains its ground above 1.40, there is potential for the
Pound to trade higher this month. We have noticed in recent weeks that
investors are potentially using the 1.40 level in the GBPUSD as a possible
pivot level, before deciding what direction the Pound could trade next;
therefore, I will continue to monitor the 1.40 level in this pair.
If the
GBPUSD manages to slip back below 1.40, it would put the Cable at risk to
concluding its current run of gains.
Hmmm!!! Folks, have you ever
imagined how the financial status of your firm will be when more than 20,000
CEOs and other key decision makers of blue-chip corporations pay for your
products and services or even give you very juicy deals. The link below will
tell you more: http://www.tectono-business.com/2015/07/tectono-business-review-in-conjunction_21.html
Have you heard this? Many
Nigerian exporters have been defrauded of huge amount of money in the process
of exporting commodities to foreign countries. Do you know why? They were not
trained on export operations, management, documentations and the best methods
of payment in export trade. This is terrible!!! Nigerians cannot continue to
lose money to foreigners in the course of export business. Exporters, why don’t
you get a practical manual that teaches the stages of export trade from
processing and packaging of commodities to receipt of payment by the foreign
buyers. It teaches export operations, export management, export documentations
and methods of payment in export trade? It is a contemporary step-by-step guide
to export trade. It tells all the contemporary dynamics in export trade. To get
it, click on the link below:
No comments:
Post a Comment