Incisive market commentary from David Morrison

Stay ahead with our market commentary and webinars from our in house market strategist

Open a Live AccountOpen a Demo Account
+ Show blog menu



Expand 2017 <span class='blogcount'>(348)</span>2017 (348)
Collapse 2016 <span class='blogcount'>(483)</span>2016 (483)
Expand December <span class='blogcount'>(23)</span>December (23)
Expand November <span class='blogcount'>(41)</span>November (41)
Collapse October <span class='blogcount'>(37)</span>October (37)
Central banks and US payrolls in focus - Weekly Bulletin
31 Oct 2016
Revised Trading Hours - UK British Summer Time (BST) ends, 30th October 2016
28 Oct 2016
US GDP in focus - AM Bulletin
28 Oct 2016
US stock indices still range-bound
27 Oct 2016
Equities drift on mixed earnings
27 Oct 2016
Earnings season, oil and the US dollar - Video Update
26 Oct 2016
Apple disappoints - AM Bulletin
26 Oct 2016
Silver range-bound - PM Bulletin
25 Oct 2016
Equities up on deals and earnings - AM Bulletin
25 Oct 2016
Spread betting charges – overnight financing - Trading Guide
24 Oct 2016
USD rally continues - Weekly Bulletin
24 Oct 2016
Deutsche Bank trades at pre-DOJ fine levels : AM Bulletin
21 Oct 2016
ECB Decision in less than 400 words - PM Bulletin
20 Oct 2016
Oil’s move to a 15-month high supports global markets - AM Bulletin
20 Oct 2016
Intel buck earnings trend as the Fed takes centre stage again - PM Bulletin
19 Oct 2016
WTI eyes resistance around June highs - PM Bulletin
18 Oct 2016
US/UK inflation data in focus - AM Bulletin
18 Oct 2016
How to know what to spread bet on : Trading Guides
17 Oct 2016
Dollar up on December rate hike speculation - Weekly Bulletin
16 Oct 2016
Oil sparks recovery on Wall Street - AM Bulletin
14 Oct 2016
FOMC minutes - hawkish or dovish? - PM Bulletin
13 Oct 2016
Weak Chinese trade number hits miners - AM Bulletin
13 Oct 2016
US indices range-bound ahead of election - Video Update
12 Oct 2016
FOMC minutes in focus - AM Bulletin
12 Oct 2016
Sterling at fresh multi-year lows : PM Bulletin
11 Oct 2016
Brent crude hits 12-month high - AM Buleltin
11 Oct 2016
How Spread Betting Works : Trading Guides
10 Oct 2016
Another disappointing US payroll report - Weekly Bulletin
09 Oct 2016
Sterling “flash crash” and US Non-Farm Payrolls - AM Bulletin
07 Oct 2016
Non-Farm Payroll look-ahead - PM Bulletin
06 Oct 2016
AM Bulletin: Equities up on data releases and oil
06 Oct 2016
Video Update: OPEC’s production cut promise poses some questions
05 Oct 2016
AM Bulletin: Precious metals slump on USD rally
05 Oct 2016
PM Bulletin: Sterling lurches lower
04 Oct 2016
AM Bulletin: Firmer start for global equities
04 Oct 2016
Trading Guide: How to use Stop Losses in spread betting
03 Oct 2016
Weekly Bulletin: Important week for data releases
03 Oct 2016
Expand September <span class='blogcount'>(41)</span>September (41)
Expand August <span class='blogcount'>(52)</span>August (52)
Expand July <span class='blogcount'>(38)</span>July (38)
Expand June <span class='blogcount'>(42)</span>June (42)
Expand May <span class='blogcount'>(42)</span>May (42)
Expand April <span class='blogcount'>(45)</span>April (45)
Expand March <span class='blogcount'>(41)</span>March (41)
Expand February <span class='blogcount'>(42)</span>February (42)
Expand January <span class='blogcount'>(39)</span>January (39)


Indices Update

European indices were saved by a late rally in oil and energy shares, pulling the benchmarks into positive territory for the close. The FTSE was helped by 0.9% increases in both BP and Royal Dutch Shell, bringing the index up 0.3% for a second consecutive session of gains to close at 7,021.92. UK employment data had little effect on the markets, despite unemployment coming in as expected at 4.9% and employment touching it’s record high of 74.5%. Despite these positive results, fears of a “hard Brexit” are still weighing on the index. Germany’s DAX followed a similar move to the FTSE, as the oil rally gave the markets the boost they needed to close marginally higher, up 0.1% to 10,645.68.

US markets had the benefit of a later open and close than European markets, allowing the oil rally to have an even greater effect as crude prices reached a 15-month high. The Fed’s Beige Book continued the narrative that the US economy is moving in the right direction, steadily expanding. Earnings season added further volatility, with the majority of results boosting share prices. Morgan Stanley was the latest in a string of financials to post better-than-expected profits for the quarter, while Intel was the largest loser of the session, finishing down 5.9%. The Dow gained 0.2% to settle at 18,202.62, while the energy sector propped up the S&P 500 to close0.2% higher at 2,144.29.

Overnight, Asian markets were seen reacting to the third and final US presidential debate, which many have deemed Hilary Clinton to come out on top. It appears many traders were etching out small-profit gains as the debate aired, with stocks broadly rising due to her dominance. Japan’s Nikkei finished up 0.2% and the Hang Seng rose 0.4%, with the Shanghai Composite not able to continue the trend, falling 0.3%.

Equities Update

The building materials supplier Travis Perkins was in the headlines for all the wrong reasons yesterday, warning earnings this year will be far below expectations. The cause? A large restructuring plan which includes the closure of more than 30 branches around the country, potentially leading to 600 workers looking for new jobs. They are also looking to shut 10 smaller distribution and fabrication centres, while writing off old IT equipment. The move comes as demand continues to decline. Travis Perkins shares dropped 4.4%, leaving it down a huge 22% since the EU referendum.

Commodities Update

Crude oil enjoyed a healthy rally in Wednesday’s session as the Energy Information Administration showed US crude stockpiles saw an incredible decrease of 5.2 million barrels last week, vastly exceeding expectations. Lower imports have been used to explain this fall. The rally began in during the European session and continued into the US, before traders cashed in on their longs when Asian markets opened. Currently crude holds ground well above the $50-mark, with Brent trading hands at $52.52 a barrel while US crude settled at $51.61 a barrel.

Precious metals are gearing up for the ECB announcements later on today, with many looking past the headline rates to listen out for any hints of future quantitative easing measures from the bank. Consumer prices have slowly turned themselves around in Europe, and the ECB will want to keep the momentum going after undergoing a gruelling time to get where they are now. Spot gold was seen up slightly this morning at $1,273.34, while the futures markets began pricing in a likely Clinton victory for the US presidency, trading at $1,271.80. The combination of Clinton as president and a probable Fed rate hike later this year are having bearish effects on gold prices. Elsewhere in metals trading, spot silver was trading at $17.67, up slightly from Wednesday’s close.

Forex Update

FX markets were steering clear of the euro this morning ahead of the ECB meeting, choosing to take a reactive stance over a presumptive one. The single currency is down to a 3-month low against the dollar at $1.0952, as the dollar was seen gaining strength against the majority of its counterparties. GBPUSD is stuck trading in a narrow range this morning, down very marginally at $1.2270. Expect both currency pairs to find some range after Draghi speaks.

Also in the majors, USDJPY saw an overnight rebound after touching a 7-day low last night. The pair managed to recover the losses felt in Wednesday’s session, seeing itself back up at ¥103.75.

Upcoming Events

It’s a big day for the ECB as they announce the interest rate and deposit rate before stating their Monetary Policy in a press conference at 1:30pm BST. Consensus is that there will be no change to these rates at 0% and -0.4%, respectively, however you can never rule out a shock decision.


Spread Co is an execution only service provider. The material on this page is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by Spread Co Ltd or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.


Posted by Michael Campbell

Category: AM Bulletin

Add a comment Add comment            


© 2018 Spread Co Limited. All Rights Reserved.

Spread Co Limited is a limited liability company registered in England and Wales with its registered office at 22 Bruton Street, London W1J 6QE. Company No. 05614477. Spread Co Limited is authorised and regulated by the Financial Conduct Authority. Register No. 446677.

Spread betting and CFD trading are leveraged products and can result in losses that exceed your deposits. Ensure you understand the risks.

Losses can exceed deposits. Click here to learn more.