Market Brief Brexit Takes a Backseat to Earnings Onslaught

Market Brief: Brexit Takes a Backseat to Earnings Onslaught

CI: View our guide on how to interpret the FX Dashboard.

The EU reportedly will not make a decision on whether to grant a Brexit extension to the UK until Friday, though most analysts believe it’s highly likely. BoJo’s team continues to threaten to call for an election if Brexit is delayed.
FX: The British pound was the strongest major currency on the day, as traders see either a Parliament-approved deal or an early election as likely to remove the uncertainty surrounding Brexit. The Japanese yen was the day’s weakest major currency.
Turkey’s lira surged higher after President Trump indicated he would likely remove sanctions on the country.
Commodities: Oil surged more than 3% on the day, helped by a surprise drawdown in crude inventories. Gold ticked about 0.5% higher.
Bitcoin fell to its lowest level since May and is now testing a critical support zone in the $7200-7400 range.

US indices edged higher after a late afternoon rally as traders digested a swath of key earnings releases from top-tier stocks (see below)
Energy stocks (XLE) were the strongest sector again today while Consumer Discretionary stocks (XLY) brought up the rear.
Stocks on the move:
- Boeing (BA) rose 1% despite reporting disappointing earnings on the continued fallout from the 737 Max Air debacle.
- Caterpillar (CAT) also tacked on 1% despite missing earnings and revenue forecasts. Temporary dealer inventory fluctuations played a role in the earnings miss.
- Texas Instruments (TXN) dumped -7% after missing revenue estimates and issuing downbeat Q4 guidance.
- Beyond Meat (BYND) shed another -8% today and is now down more than 60% from its peak.
- Today’s after-the-bell earnings reports included Tesla (TSLA), Ford (F), Microsoft (MSFT), Paypal (PYPL), and eBay (EBAY), so expect volatility in those top-tier names tomorrow.

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.cityindex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.

ALL TRADING INVOLVES RISKS. LOSSES CAN EXCEED DEPOSITS.

City Index is a trading name of StoneX Financial Pte. Ltd. (“SFP”) for the offering of dealing services in Contracts for Differences (“CFD”). SFP holds a Capital Markets Services Licence issued by the Monetary Authority of Singapore for Dealing in Exchange-Traded Derivatives Contracts, Over-the-Counter Derivatives Contracts, and Spot Foreign Exchange Contracts for the Purposes of Leveraged Foreign Exchange Trading. SFP is also both Derivatives Trading and Clearing member of the Singapore Exchange (“SGX”). SFP is a wholly-owned subsidiary of StoneX Group Inc.

The information provided herein is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to invest, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk.

The information does not represent an offer of, or solicitation for, a transaction in any investment product. Any views and opinions expressed may be changed without an update. To understand the risks and costs involved, please visit the section captioned “Important Information” and the “Risk Disclosure Statement”.

The information herein is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.

StoneX Financial Pte. Ltd. 1 Raffles Place, #18-61, One Raffles Place Tower 2, Singapore 048616. Tel: 6309 1000. Co. Reg. No.: 201130598R.

This advertisement has not been reviewed by the Monetary Authority of Singapore.