- Market snapshot: At 13:00 BST, NZD and GBP were among the strongest and JPY and USD the weakest. Stocks were on the rise, and commodities mixed. It was risk ON ahead of the open on Wall Street.
- Brexit update: The UK parliament triggered the Letwin amendment on Saturday, which effectively meant the “meaningful vote” was delayed. However, reports that the government may have the required number of votes to secure a deal saw the GBP quickly regain its poise, causing the GBP/USD exchange rate to break above the 1.30 handle this morning. The UK government is still seeking a meaningful vote later today but the decision whether to allow it is in the hands of Commons speaker John Bercow.
- Canada elections 2019 is underway today and it be a hotly-contested race. Incumbent Prime Minister Justin Trudeau is desperately seeking a second term for his Liberal Party but the latest polls from CBC news shows his party is holding an average of 32% of support, only just ahead of the Conservative Party which is trailing at 31.6%. HERE is what we think the result of the elections mean for the Loonie.
- Commodities: Silver was attempting to break higher, but gold remained range-bound as investors weighed the impact of falling dollar against a still-buoyant stock market. Will silver follow the lead of copper and palladium and rise, or will gold hold it back? We are turning bullish on the white metal for THESE four reasons. Meanwhile, crude oil extended its losses this morning after Friday’s breakout attempt failed as investors worried about rising US supplies. However, oil prices were rebounding off their worst levels at the time of writing. The upcoming earnings will provide clues about the level of demand for the black stuff.
- Stocks: were marginally highs in Europe with the DAX outperforming with a gain of 0.8% while the FTSE was just about in the positive territory, weighed down by the appreciating pound amid Brexit optimism. Sentiment remains supported – for now – amid growing optimism over resolutions for Brexit and US-China trade deal. On a micro level, US earnings will be in focus this week, although there aren’t any big household names reporting today.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.