Independent Investor News and Updates - Part 2

Market Update: Week Starting 30/03/2020

Author: Connor Campbell / In News

Update 03-04-2020: Markets remain relatively unshaken despite -700k non-farm reading Once again the markets were relatively calm in the face of some horrendous jobs data out of America.   Though not immediately alarming as Thursday’s 6.6 million new jobless claims, nor last week’s 3.3 million filing for unemployment, Friday’s nonfarm figures were pretty concerning. The headline number came in at -701k against the -100k forecast (and the 273k seen the month previous). That means the US shed 701,000 jobs during the period the report covers – crucially a period that omits the last fortnight, i.e. the timeframe in which nearly 10 million Americans lost their jobs. The unemployment rate itself, meanwhile, rose from 3.5% to 4.4% month-on-month.   And yet, just as they did yesterday, when they were distracted by Trump’s Russia/Saudi oil deal promise, and last week, when they were basking in the glow of the Senate’s $2.2 trillion […]

Market Update: Week Starting 23/03/2020

Author: Connor Campbell / In News

Update 26-03-2020: Record breaking number of US jobless claims fails to prevent market rebound An astonishing – as in, astonishingly bad – jobless claims figure failed to stop a continuation of the week’s rebound this Thursday.   For the week ending 21st March, 3.283 million people filed for unemployment in the USA. The week prior it was only 281k. In fact, the all-time record is just 695k, set back in October 1982. Even at the height of the financial crisis the figure peaked at 665k.   At the start of the year that jobless claims reading was unimaginable. Today it actually fell short of some analysts’ top end estimate of 4 million. Regardless, it is a truly alarming figure whichever way you slice it, yet one that failed to send the markets into another downward spiral.   If anything, after the reading was released equities actually started to pick up, […]

Market Update: Week Starting 16/03/2020

Author: Connor Campbell / In News

Update 20-03-2020: FTSE and Dow Jones see gains start to dissipate, Eurozone and pound hold strong Though the overall picture remained positive this Friday, the FTSE saw its rebound continued to ebb away as the session went on.   At one point up close to 5%, the UK index’s gains dwindled to just 0.2%. The FTSE was in part dragged down by its banking stocks, with RBS leading the way with an 8% decline. The pound’s persistent rebound also harmed the index; sterling rose 2.3% against the dollar and 1.7% against the euro, lifting away from its recent 1980s-matching lows.   The fact Rishi Sunak’s much-speculated upon stimulus package failed to materialise didn’t do the UK index any favours.   The FTSE wasn’t alone in this comeback. Climbing around 2% after the bell, the Dow Jones saw its growth reduced to 0.4% following the latest intervention from the Fed. The […]

Market Update: Week Starting 09/03/2020

Author: Connor Campbell / In News

Update 13-03-2020: Wobbly Dow rebound keeps European markets in the green at end of historic week Though the European rebound has lasted as it has at any point in the last couple of weeks, its strength was undermined a tad by a US open that couldn’t quite decide how strong it wanted to be.   At points striking 22250, the Dow Jones seemed to settle into a 600 to 700 point increase as the open faded into the distance, keeping it around the 21800 mark. Though still a substantial rise, its slightly wobbly nature wasn’t the major confidence boost the European indices could have done with to ensure their own gains until the end of the session.   Nevertheless Europe did push ahead, if at a reduced pace compared to their midday peak. The FTSE was up 2.4% to 5350, with the DAX adding 1.7% and the CAC climbing 3.2%. […]

Europe loses confidence in coronavirus rebound as indices sink back into the red

Author: Connor Campbell / In News

With the whiff of a springy rotting feline seeping into trading rooms, the European markets completely erased their gains on Tuesday.   At the very start of the day investors seemed unsure whether to buy into the rebound, the European indices struggling to settle into a groove.   That did come, however, and with hopes that Trump is preparing a major economic relief strategy – if it can get through Congress – the likes of the FTSE and DAX were soon up close to 3% apiece.   Now the UK index finds itself nearing 5950 after slipping 0.6%, with its German counterpart shedding another 1.3%, forcing it the wrong side of 10550.   Though the Dow Jones managed to cling onto some growth, its 200 points rise leaves it a staggering 1000 points shy of the session’s 25000-tickling highs.   There wasn’t necessarily any one major headline to spark this […]

Dow Jones sinks to one year low as market continues to suffer major breakdown

Author: Connor Campbell / In News

There was the ominous sense of living through history this Monday, traders experiencing a session that may well become synonymous with the cost of the coronavirus crisis. That is, as long as there isn’t anything worse on its way…   The Dow Jones, which has already shown its willingness to move in the last month, looked to surpass its record for a single session points plunge – a record, remember, that was set just one week ago.   Shedding 1,600 points the US index got cut down as soon as it joined its European comrades on the bloody market battlefield, only adding to the gore as the bell rang on Wall Street. With Chevron falling 14%, and ExxonMobil losing 10%, the Dow found itself at its worst price since the start of 2019, echoing the lows suffered in the Eurozone.   In terms of a percentage decline, the Dow outperformed […]

Unshakeable coronavirus panic leaves European indices stuck with triple digit declines

Author: Connor Campbell / In News

The markets didn’t even both with the pretense of a calm start on Friday, bringing another rough week to a close with their latest triple digit decline.   At this point it is hard to come up with something new to say about the situation. With no signs of the outbreak slowing down – the UK, for example, saw its first Covid-19 death on Thursday – investors remain gripped with a near unshakeable panic, the week’s various central bank rate cuts only serving to reinforce the seriousness of the situation.   The FTSE was slightly better than its Eurozone peers, falling 2.2%. That left the UK index at 6700, a couple of hundred points above July 2016-matching lows struck on Monday. The DAX found itself down 300 points and stuck under 11650, while the CAC plunged 150 points as it desperately tried to hold above 5200.   Turning to this […]

Dow Jones, FTSE unravel as coronavirus panic once again grips investors

Author: Connor Campbell / In News

What started as a fairly calm session unravelled as the day went on, with investors once again gripped by panic about the cost of the coronavirus.   The Dow Jones – which is lurching from green-to-red on a day-by-day basis – shed 700 points as trading got started on Wall Street, plummeting back under 26400 in the process.   This ensured that the European indices spent another session struggling under the weight of the current outbreak uncertainty. The FTSE, which was already having a bad one, saw its losses expand to 125 points, forcing it below 6700. The DAX, which had started the day flat, ended up shedding 1.5%, while the CAC lost more than 100 points as it fell towards 5350.   How things pan out on Friday morning may well be dictated by just how bad things get by the US close. The Dow has really shown a […]

Dow Jones climbs 500 points despite IMF comments hurting sentiment

Author: Connor Campbell / In News

Though off their intraday highs, the markets clung onto their rebound on Wednesday, trying their best to ignore the IMF’s warnings.   The Washington-based institution became the latest body to slash GDP forecasts, stating that ‘global growth in 2020 will dip below last year’s levels’. For reference, the IMF was previously expecting worldwide growth of 3.3% against 2019’s 2.9%.   It refused, however, to be drawn into exact forecasts, not only for the globe, but for China. Talking of the superpower, the IMF would only say that previous growth estimates are ‘no longer valid’.   This dose of reality – which came alongside a jump in UK coronavirus cases from 51 to 85 – undid some of the goodwill generated by the World Bank’s $12 billion stimulus pledge, taking the Western indices from their highs.   Nevertheless they remained strongly up on the day, the European gains firmed up by […]

Surprise Fed rate cut leaves markets underwhelmed as investors lament lack of G7 action plan

Author: trader / In News

It looked like the G7’s brightest and best financial minds had failed to deliver – and then the Federal Reserve went and announced an impromptu rate cut.   After a conference call between its central bankers and finance ministers – they daren’t actually meet in person, duh – the G7 issued a statement, via Jerome Powell and Steven Mnuchin, reaffirming the group’s commitment to combatting the coronavirus without actually announcing any concrete measures.   It looked like that was all the markets were going to get – disappointing, yet pointing well enough in the right direction to broadly preserve the day’s gains.   But Powell had an ostensible ace up his sleeve. His arm no doubt twisted by a dovish Donald Trump, the Fed slashed interest rates by half a percentage point to 1%-1.25%, taking the number of FOMC cuts to 4 since July last year.   The Dow Jones […]