Spreadex Market Update
Apple stock drops in another Rough Day For Markets
It was a difficult day for equity markets yesterday, despite further weakness in the US Dollar.
The relief rally seen in response to the BOE’s intervention on Wednesday proved to be short lived with bond yields soaring higher again, dragging asset prices lower.
Tech stocks were among those hardest hit yesterday with both Apple and Tesla seeing large drops. Apple shares are now down almost 10% from the week’s highs while Tesla is down 8% and now testing the September lows.
Bank of America was seen downgrading Apple’s stocks on the back of the company’s recent announcement that it will scrap increased production plans for Iphone 4. The news has fuelled fears of a slowdown in top-tier companies, putting downward pressure on stock sentiment into the weekend.
Key Factors for Today
- USD remains under pressure despite further hawkish Fed commentary as GBP steals the show
- Equities markets broke down further yesterday as bond yields surged higher, shrugging off the BOE intervention on Wednesday
- GBP is rallying today on speculation the government might reduce the spending outlined in its mini-budget as well as expectations of aggressive BOE action
- Risk currencies weaker again today following stocks drop
- Gold and silver rally on USD weakness – oil stalled on recession fears
Coming Up
- EUR Eurozone flash CPI estimate
- USD US Core PCE
- USD Fed’s Brainard, Bowman & Williams to speak
Equities Back Under Pressure As Bond Yields Rise Again
Indices across the board were seen falling yesterday amidst the fresh uptick in bond yields. The S&P fell to new lows for the year, as did the FTSE. With the UK government pushing back against calls to review the tax-cuts announced last week, including criticism from the IMF, markets fear that recent market volatility is likely to get a lot worse over the remainder of the year. There is, however, some speculation that the government will reduce some of the spending outlined in its budget which is driving a rally in GBP currently.
Fed Members Back Further Rate Hikes Despite Market Volatility
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.
