Latest Posts

rss

Japanese financial authorities to cap leverage in cryptocurrency trading

  
Analysis, BITCOIN

Japan press (Nikkei) report on moves to further restrict crypto margin trading

  • cabinet has approved draft amendments to laws which would cap leverage in virtual currency margin trading at two to four times initial deposits
  • brings the limits in line with standards are similar to those in foreign exchange trading
  • All cryptocurrency exchanges that handle margin trading will be required to obtain new government registration
Japan press (Nikkei) report on moves to further restrict crypto margin trading

US major indices start the week with gains

  
Analysis, US Market

Midday dips into the red, reversed and close well off  the lows

The major US stock in the US are ending the day in the black after a dip midday sent the pair in the red.   Even the Dow closed higher despite a drag by Boeing. The shares of Boeing subtracted 40 some odd points from the Dow.
The final numbers are showing:
  • S&P, up 10.52 points or 0.37% at 2833.01. The low reached 2821.99 but remained well above the 2800 level
  • Nasdaq, up 25.95 points or 0.34% at 7714.47. The high reached 737.66. The low reached down at 767.74
  • Dow rose 65.23 points or 0.25% at 25914.10.  The low reached 25785.66. The high extended to 25924.
Winners included financials:
  • Deutsche Bank, +4.17%
  • Goldman Sachs, +2.13%
  • Wells Fargo, +2.13%
  • Bank of America, +1.81%
  • Morgan Stanley, +1.64%
  • PNC financial, +1.54%
  • Citigroup, +1.12%
  • Charles Schwab, +0.99%
Other winners included:
  • Amazon, +1.74%
  • Microsoft, +1.43%
  • Broadcom, +1.22%
  • Caterpillar,1.06%
  • Apple, +1.02%
  • Home Depot, +0.66%

Losers included:

  • Facebook, -3.32%
  • Tesla, -2.16%
  • Boeing, -1.71%
  • Walt Disney, -1.60%
  • United Continental, -1.18%
  • Delta Airlines, -0.88%
  • Southwest airlines, -0.58%
  • Celgene, -0.53%
  • Nvidia, -0.51%
  • Intel, -0.42%
  • Twitter, -0.42%

European shares end the session mostly higher. German Dax lags.

  
Analysis, Global Indices

10 year yields are lower

The major European shares are ending the session mostly higher with German Dax lagging.
The provisional closes are showing:
  • German DAX, -0.2%
  • France’s CAC, +0.1%
  • UK’s FTSE, +0.9%
  • Spain’s Ibex, +0.9%
  • Italy’s FTSE MIB, +0.9%
In the benchmark 10 year note sector yields are lower. German yields are down marginally.  Spain, Italy and Portugal are down more as growth, inflation and the prospect for more ECB stimulus sends yields lower.

Saudi oil minister: OPEC+ needs a few months to drain excess inventory

  
  Analysis

No OPEC+ meeting in April, next one to be in June

  • Next JMMC meeting likely in first half of May
  • Date to be announced in the next two weeks
  • Inventory glut needs to be drained before cuts are ended
  • Confident that March oil output cuts compliance is to exceed 100%
Unless the Saudis themselves step up with further cuts, it’s hard to see how they can keep up with >100% compliance. That said, sentiment remains that as long as they are still doing their part it should keep oil prices underpinned over the next few months.

Eurozone January trade balance €17.0 billion vs €15.0 billion expected

  
Analysis, Economy

Latest data released by Eurostat – 18 March 2019

  • Prior €15.6 billion; revised to €16.0 billion
  • Non-seasonally adjusted trade balance €1.5 billion
  • Prior €17.0 billion
Exports rose by 0.8% m/m while imports were also up by 0.3% m/m, so that will offer some good news for the overall Eurozone trade outlook; though this is January data only. Trade to the US is seen at a surplus of €11.5 billion and that is higher than the €10.1 billion recorded in January 2018. Can you say tariffs?

Cable falls to session low as markets wait on further Brexit developments

  
Analysis, Forex

Cable touches a low of 1.3246 as MV3 is eyed

GBP/USD H1 18-03

Despite buyers staying in near-term control, the 1.3300 handle remains a key resistance level at this point as Brexit developments go silent today with the government talking with the DUP to convince them to vote for May’s deal in a potential third meaningful vote tomorrow or Wednesday.
The DUP’s support is key to sway other voters at this point and euroskeptic parliament members remain adamant that things won’t change and May will eventually pull tomorrow’s vote from being tabled. The risk of that is likely weighing on the pound for the time being as headlines are currently few and far between.
That said, there is still some support for the pound and cable close to the 50.0 retracement level as we saw last week around 1.3216. The 100-hour MA (red line) also resides at 1.3220 now so that will offer additional support for buyers. Light bids are then noted around 1.3200.
Those will be the key levels to eye for in the sessions to come if you’re looking for any extension towards the upside or downside for cable.
Go to top