Rebound Wednesday
FTSE rebounds as weaker pound overshadows AstraZeneca
Share this:
US tech stocks were in the firing line once again overnight with the Nasdaq weathering a 4% drop whilst Tesla tanked over 20%. The selloff in the tech heavy Nasdaq took the Nasdaq into correction territory for the second time this year.
Not only did Tesla miss out on S&P inclusion but GM buying up a $2 billion stake in Nikola is unnerving investors. Up until now Tesla has been without serious competition. However, Nikola is starting to look as if it could be in the running.
News AstraZeneca will halt all its vaccine trials as a participant in the trials appeared to experience adverse side effects initial sent the market southwards. It is standard procedure to halt vaccine trials in such circumstances for independent review and the market accepted the expanation without too much damage. The markets are particularly sensitive to vaccine news given that it is the surest and quickest route to return to pre-covid levels of economic growth.
The vaccine news comes as the British government bans the meeting of over 6 people in an attempt to stem the rise of covid cases, in a one two punch to sentiment. Yet despite the stacking up of bad news European market performed a serious U-turn on the open and are trading firmly higher across the board.
Brexit Hits Pound
The UK today will release its internal markets bill which has caused some controversy. Whilst the British government is painting this to be a tweaking round the edges of the Brexit withdrawal agreement and a clarifying of trade between the UK and Ireland, the EU is seeing this through a very different set of eyes. The EU is viewing this as an overriding of an international treaty and breaking international law, making the UK government appear very untrustworthy.
This latest development in the Brexit story is having a huge a big impact on GBP which has plunged over 1.3% yesterday and is off further today. GBP/USD trades over 2.3% lower this week so far, unwinding gains across the past month. A
There is a good chance that the Pound could extend losses now as we head towards the October 15th deadline as the reality of a no trade deal Brexit starts to hit home. Up until now there had been an assumption that the EU and the UK would pull the cat out of the bag and agree a deal at the last minute. Any tampering with the Brexit divorce bill would means the chances of a trade deal are significantly lower.
FTSE Chart
US tech stocks were in the firing line once again overnight with the Nasdaq weathering a 4% drop whilst Tesla tanked over 20%. The selloff in the tech heavy Nasdaq took the Nasdaq into correction territory for the second time this year.
Not only did Tesla miss out on S&P inclusion but GM buying up a $2 billion stake in Nikola is unnerving investors. Up until now Tesla has been without serious competition. However, Nikola is starting to look as if it could be in the running.
News AstraZeneca will halt all its vaccine trials as a participant in the trials appeared to experience adverse side effects initial sent the market southwards. It is standard procedure to halt vaccine trials in such circumstances for independent review and the market accepted the expanation without too much damage. The markets are particularly sensitive to vaccine news given that it is the surest and quickest route to return to pre-covid levels of economic growth.
The vaccine news comes as the British government bans the meeting of over 6 people in an attempt to stem the rise of covid cases, in a one two punch to sentiment. Yet despite the stacking up of bad news European market performed a serious U-turn on the open and are trading firmly higher across the board.
Brexit Hits Pound
The UK today will release its internal markets bill which has caused some controversy. Whilst the British government is painting this to be a tweaking round the edges of the Brexit withdrawal agreement and a clarifying of trade between the UK and Ireland, the EU is seeing this through a very different set of eyes. The EU is viewing this as an overriding of an international treaty and breaking international law, making the UK government appear very untrustworthy.
This latest development in the Brexit story is having a huge a big impact on GBP which has plunged over 1.3% yesterday and is off further today. GBP/USD trades over 2.3% lower this week so far, unwinding gains across the past month. A
There is a good chance that the Pound could extend losses now as we head towards the October 15th deadline as the reality of a no trade deal Brexit starts to hit home. Up until now there had been an assumption that the EU and the UK would pull the cat out of the bag and agree a deal at the last minute. Any tampering with the Brexit divorce bill would means the chances of a trade deal are significantly lower.
FTSE Chart
Related tags:
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
EUR/USD, FTSE 100 Forecast: Two trades to watch 1507
EUR/USD rises after weaker US CPI, PPI up next. FTSE 100 falls as weak China GDP data hits miners.
FTSE 100, USD/JPY Forecast: Two trades to watch
FTSE eases modestly despite inflation unexpectedly holding steady. USD/JPY drifts lower ahead of the FOMC rate decision.
EUR/USD, FTSE 100 Forecast: Two trades to watch 21-05-26
EUR/USD slips below 1.16 as weak eurozone data weighs on sentiment. FTSE 100 slips as oil prices rebound and caution returns.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.