Global stocks are on the rise as investor sentiment has been lifted by the decision of Hong-Kong’s leader to formally withdraw the extradition bill, finally bringing peace to the region and likely putting an end to a 3-month protest. The withdrawal of the controversial bill is set to be announced later in the day and the Hang Seng Index is already registering its highest gains since 2018, with a +4.10% so far.
Photo by James Claffey.
This renewed confidence has quickly spread to the rest of the world, especially Europe, where investor sentiment had already been boosted by political events in the UK. British PM Boris Johnson lost his parliamentary majority and the chamber voted a law to prevent a no deal Brexit. Even if Johnson responded by threatening to seek a general election, this vote remains a key victory for the rebels’ alliance. An immediate bullish reaction has been observed on the Pound Sterling overnight as well as on the FTSE-100 index this morning, shortly after the opening bell, as investors welcomed the news.
Photo by Robert Bye.
In Europe, every benchmark is trading higher as each of the 19 European sectors are in green territory, with Retailers and Banks posting the best performance. Investors will also be waiting for Mike Carney’s comments before the Treasury Committee today, during which the BoE’s Chairman will discuss August inflation in the UK as well as its future relationship with the EU. In the meantime, John Williams from the FED of New York will also discuss monetary policy today, ahead of J. Powell’s speech on Friday following the new release of Non-Farm Payroll data for August: disappointing data may lead traders to bet on further rate cut by the FED this year.
While a student, Pierre Veyret had a passion for the financial markets. At the time, he studied International Trade through the setting up of import / export operations and it was the techniques of hedging against exchange rate risks that helped him to make the link with the financial markets, and all especially that of Forex. It is therefore with the aim of anticipating the price of currencies several months in advance that Pierre quickly turned to different methods of analysis by drawing inspiration and surrounding himself with experts in the field. Shortly after, Pierre decided to specialize in Technical Analysis, a discipline he had the opportunity to practice with real market professionals, thanks to AFATE / IFTA, an association of which he has been an active member for several years. Pierre Veyret is passionate about the field of the financial industry with a particular interest in the various techniques of stock market forecasting. Currently, Pierre is based in the City of London where he works as Chief Analyst. He performs regular interventions on a multitude of asset classes through various media (television, internet and print media).
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© 2019 High Leverage FX - All Rights Reserved.