Sino US progress boosts markets

The almost year-long tug of war between the US and China may be finally reaching some form of resolution. After the most recent set of negotiations, the negotiators from both sides have kept the details of the outcome close to their collective chests, but they are now reportedly preparing a final document which could be ready to be signed by the presidents of the two countries when they next meet in mid- March.

The stock markets’ first reaction was a rally which is likely to be replicated over the coming days, particularly when the two sides then decide to remove the tariffs that are already in place now. The FTSE is trading up 0.63% this morning and the DAX, which has always suffered more from the Sino-US tensions because of the heavy exposure of its car industry to Asia trade, is 1.1% higher.

MSCI multiplies China’s share in global index

In a boost to Chinese stock markets major global index provider MSCI decided to quadruple the weighting of domestic Chinese shares in its emerging market index. The move is a nod to the process of opening of China’s home markets to foreign investors. Until now investing in an Asia or emerging market index would have mostly involved buying Chinese stocks listed in Hong Kong or on foreign exchanges, but the redefined MSCI index will be tied to China’s domestic shares, thus directing international capital into mainland China’s stock market.

Forex the day after Corbyn’s Brexit U-turn

Having been buffeted by Brexit news flow all of this week the currency market seems a bit more sedate Friday. The pound is a notch weaker against the euro and against the dollar this morning but is trading comfortably above the $1.320 level indicating that the market is discounting a no-deal Brexit as a likely outcome. The finer points of the current Brexit proposal are still being negotiated in Brussels but now that Theresa May has agreed that MPs will be allowed to vote on delaying Brexit and Jeremy Corbyn has said he would back a second referendum, there is little to do other than wait and see how it all plays out.

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.