Top Story

The virus is back

Three issues are dominating the markets this morning: the return of China’s coronavirus, the European Central Bank meeting and the approval of the final Brexit bill.

FTSE stocks with exposure to Chinese markets such as miners, particularly the heavy-volume trade such as Glencore, hotel chains and airlines and HSBC bank are all dropping now that the spread of the coronavirus seems to have intensified. Even miner Anglo-American which reported a 4% increase in output dropped amid the virus news flow. China has quarantined Wuhan where the virus seems to have originated, preventing any transport in and out of the city of 11 million. The biggest concern remains that the virus will spread faster than usual because of the start of the Chinese New Year festivities, which sees large swathes of population travel across the country over a week-long period.

Is the mood about to change at the ECB?


When the ECB meets under the helm of Christine Lagarde later today it is not expected to change current interest rates but recent flickers of hope in the European economy could cause the bank to revise its narrative towards a more neutral rate stance rather than a dovish one. The euro is trading unconvincingly higher against the pound ahead of the meeting and marginally weaker against the dollar, reflecting investors' lack of conviction about a significant change ahead.

Boris’ “no children” bill passes

Parliament has approved the final version of the Brexit bill which was held up in the Lords earlier this week because it had cut out Britain’s commitment to take in the children of immigrants but now the bill just needs Her Majesty’s approval before it becomes final and guarantees Britain’s departure from Europe at the end of next week. The pound is a touch weaker against the dollar but it is holding firm above the $1.31 line.

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. 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. Losses can exceed your deposits. 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 we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

The markets are moving. Stop missing out.

OPEN AN ACCOUNT