Close Preview x  
Close x
Expert Advisor Hosting Request

Please provide the following information:
(All Fields Required)

X My Account Secure Account Login Login

Close x
Online Security

Secure login
Ensuring the security of your personal information is of paramount importance to us. When you sign in to the trading platform, your User ID and password are secure.

The moment you click Login, we encrypt your User ID and password using 128-bit Secure Sockets Layer (SSL) technology.

Browser security indicators
You may notice when you are on our website that some familiar indicators do not appear in your browser to confirm the entire page is secure. Those indicators include the small "lock" icon in the bottom right corner of the browser frame and the "s" in the Web address bar (for example, "https").

To provide the fastest access to the trading platforms, we have made signing in to trading platforms secure without making the entire page secure. Again, please be assured that your ID and password are secure.

Close x

We would like to contact you by telephone to help you make the most of your demo account, and inform you about our products and services. By submitting your telephone number you agree that can contact you by telephone.
Privacy policy
Risk appetite remains positive

Updated  Mar 12, 2018 10:36:32 AM Written by Fawad Razaqzada

Investors’ appetite for risk improved in the latter parts of last week and the positively has continued at the start of this one. At the time of this writing, European and US equity indices were trading higher, with the Nasdaq 100, which outperformed last week, hitting a fresh record high. The S&P 500, which closed just 3% away from its own record high set in January, looks like it may also print a new high at some point this week.

Sentiment improved last week as concerns eased over: (1) nuclear threats from North Korea, (2) the prospects of a trade war, (3) the possibility of sooner-than-expected tightening of monetary conditions in the Eurozone and Japan, and (4) the US economy.

All of a sudden there was unexpected urgency from North Korea to denuclearize and US President Donald Trump has agreed to meet the nation’s leader Kim Jong-un face-to-face by May. This sharply reduced the appeal of safe haven assets like gold and yen, boosting risk-sensitive assets across the board.

On top of this, both Mexico and Canada were spared from the harmful impact of the US tariffs on aluminium and steel imports – at least while they negotiate NAFTA terms. China and the European Opinion are among the economic regions that will pay the penalty for exporting these metals to the US. However, the US has allowed its allies to apply for exemptions and it would be a major surprise if the EU chose not to. Trump back-peddled a little after a number of Republicans voiced concerns he was alienating the nation’s closest international partners, who had threatened to retaliate. But there’s no guarantee that the EU will be granted an exemption. On the contrary, the EU and China could retaliate and this may trigger a so-called trade war.

For now, however, these concerns are not clearly evidenced in the wider stock markets. Granted, we are not totally out of the woods yet, and equity prices remain overstretched on historical basis, but there’s definitely fewer reasons for investors to fret over than at the start of last week.

Another reason for last week’s positively was when both the Bank of Japan and the European Central Bank delivered rate decisions that were deemed to be slightly more dovish than had been expected. The ECB revised downward its expectations about 2019 inflation, indicating that even when QE purchases end, interest rates will likely remain low. Recent economic pointers in the Eurozone have been soft, especially in Germany. If the euro weakens now, this should help support European export names.

The focus of the market will remain on the global economy after Friday’s release of US jobs data smashed expectations as employment grew by a solid 313 thousand, which was the strongest showing in 18 months. Average hourly earnings however grew only modestly, up 0.1% month-over-month. But this was excellent news for equities as it helped to keep the prospects of even quicker rate rises in check. Those expectations may have to be revised however if this week’s release of inflation data show that the tighter labour market conditions are boosting price levels.

In China, meanwhile, recent economic indicators have been mostly disappointing. So, the latest industrial production data on Wednesday better show a positive surprise, else Chinese demand worries could resurface and undermine risk appetite.

But overall, this week’s economic data releases are not as important as last week, with the exception of the US CPI and perhaps China’s industrial data.

So, at the start of this week, risk remains on the table. However, much of the positivity may already be priced in and there is the possibility for trade war concerns to resurface if the EU/China were to retaliate and introduce their own tariffs on imports of US goods and services. The possibility of a strong rise in US inflation or the prospects of poor Chinese data could also weigh on sentiment.

Disclaimer: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that is not rendering investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. is regulated by the Commodity Futures Trading Commission (CFTC) in the US, by the Financial Services Authority (FCA) in the UK, the Australian Securities and Investment Commission (ASIC) in Australia, and the Financial Services Agency (FSA) in Japan. Please read Characteristics and Risks of Standardized Options.


Test your trading strategies risk free btn_demo_blue_hover.gif OR btn_open_an_account_dark_grey_alt_hover.gif

Have more questions?

Chat Live Now or call 0800 032 1948