Friday, 16 October 2020

INVESTORS RETURN TO RISK AVERSION MODE AS STIMULUS HOPES FADE & PANDEMIC SURGES


Hussein Sayed,

Chief Market Strategist at FXTM

 

With less than three weeks remaining until the US presidential elections, investors are finding little reason to add risk assets to their portfolios. Stocks have sold off for a second consecutive day and US futures are indicating more losses for Thursday.


Fellow #Nigerians, are you aware that our #crude #oil will soon become useless? Yes, it will, in no distant time, become #valueless owing to the fact that the #countries that rely on it as their only source of #energy are developing more affordable #alternative sources of energy. When this finally happens, what will we do? How are we currently preparing for this imminent #economic doom? Which other sector will continue to stabilize our economy? Nigerians, the only #solution is developing the #agricultural sector. In fact, this is the only #solution. Very soon, the major source of revenue will become agriculture and #agro-exports. How are you positioning yourself to play big in agro-export #business? Why don’t you get a practical manual that explains the stages of export trade from #processing and #packaging of #commodities to receipt of #payment by the #foreign buyers? Yes, arm yourself with the #contemporary #trends in #export #trade. This manual explains export #operations, export #management, export #documentations and methods of #payment in export trade? Yes, 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 this link: http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html   

 

After kicking off the day in positive territory, US equities could not hold on to their gains yesterday following comments from Treasury Secretary, Steven Mnuchin, who said getting a stimulus agreement before the election would be difficult. As a result, the S&P 500 fell 0.7% and the tech-heavy Nasdaq 100 declined 0.8%, led by more than 2% losses in Amazon. News that mega cap drug company Johnson & Johnson has halted trials of its experimental Covid-19 vaccine has added more gloom, given the recent spike in global infections.

 

Earnings aren’t helping much either despite investment banks such as JP Morgan and Goldman Sachs crushing Wall Street estimates. Most of the positive results are driven by lower provisions for bad debt, investment banking fees and trading revenues which are volatile in nature. However, Bank of America and Wells Fargo showed us the damage caused by low interest rates on their top and bottom lines which represent the biggest portion of their revenues. Net interest income at the former fell 17% compared to last year and almost by a fifth at Wells Fargo. This reminds investors that commercial banks are still far away from a full recovery.

 

Do you know that the kind of #vehicle you drive goes a very long way in affecting your #image? Yes, your vehicle tells people, including your #prospective #clients, how #comfortable you are. #Comfort is directly proportional to #competence. Of course, if you are competent in what you do, you will be comfortable enough to afford at least a #brand #new vehicle. Have you ever wondered why #banks and other #financial #institutions give their #marketers brand new cars? Your level of comfort goes a long way in determining if your prospective clients will trust you. The reason why you have not won those contracts or deals could be because your prospective customers think that you are incompetent owing to how worn-out your car is. Yes, the onus is on you to acquire brand new cars. Top sales people buy new cars every year. Do you know what? That worn-out vehicle that you currently drive can look like a brand new one. We, at GOF AUTOS LIMITED can make it possible via total #body #work, #refurbishing, #priming, #painting with the best #paint in the #world called #SIKKENS #PAINT, #OVEN #BAKING with a world-class oven and #BUFFERING. #Blue-chip #companies, #CEOs and top #managers give us all their worn-out vehicles for body work. You, too, can enjoy our world-class services. For details about GOF Autos Limited, click: http://www.tectono-business.com/2017/06/gof-autos-limited-best-automobile.html

 

As we approach 3 November, expect volatility to surge further. Although most polls show Joe Biden in the lead and a high chance of a Democrat clean sweep, the 2016 elections have taught investors not to completely trust polls. However, this could be a good opportunity for longer term investors looking for bargains.

 

In foreign exchange markets, Sterling has been the most interesting currency over the past 24 hours. GBPUSD traded in a range of more than 200 pips driven by Brexit negotiation headlines. News that the UK will continue its talks with the EU even if a deal isn’t confirmed in today’s summit overshadowed risks of a national lockdown due to the virus surge. We know that it’s not in anyone’s interest if the UK leaves the EU without a deal, and the markets so far are leaning towards an 11th-hour Brexit agreement. That’s why the Pound is still hovering around the 1.30 level. With GBP implied volatility continuing to surge, we should expect big moves either way. However, the magnitude of the downside risk is much greater given traders have already priced in most of the positive outcome.

 

Extra-smart #people deserve extra-smart #investment in #landed #properties at the new #Lagos, otherwise known as #Ibeju #Lekki. This is where great #developmental #projects are currently going on and in the next two years, it will surpass #Lekki Phase 1 Estate. Are you aware that #Lekki #Port will commence full operations in 2022? This implies #port #operations and #development are shifting from #Apapa to Ibeju-Lekki. Any plot of land you buy in Ibeju-Lekki now will appreciate by excess of 200% in 2022. Other notable attraction here include: Lekki #Free #Trade #Zone, #Dangote #Refineries, Eleko #Beach, Lekki, New #Epe #International #Airport, #Eleganza #Industrial #Estate, Pan #Atlantic #University etc. If you have not invested heavily in landed properties, you have not landed. Acquire genuine plots and hectares of land free from government encumbrance in our estates at Ibeju-Lekki. For details, click: http://www.tectono-business.com/2019/07/have-share-of-new-lagos-by-investing-in.html

 

The Euro should also be on the radar of traders as several continental countries are experiencing fresh spikes in Covid-19 cases.  France declared a state of emergency in Paris and eight other regions across the country following Spain, which already declared one last Friday. Germany is also experiencing a record daily increase in new cases and there’s high possibility of new measures being ordered. This second wave would kill the recovery seen in the past several months and lead to more stimulus from the ECB. That’s why we expect the single currency to remain under pressure over the foreseeable future.

No comments:

Post a comment