Market News & Analysis


Market Brief: BoJo’s Brexit Setback Hits Sterling

View our guide on how to interpret the FX Dashboard.

  • Parliament voted down Boris Johnson’s Brexit “programme motion timetable” 322-308, meaning that the PM must request an extension, which the EU is likely to grant. Johnson has been outspoken that he still intends to have the UK leave the EU by the end of the month, though he may accept a “technical” extension to work out any sticking points.
  • FX: The yen was the day’s strongest major currency after a late shift to risk-off trading. The pound was the day’s weakest major currency.
  • The Canadian dollar initially ticked lower as traders digested the result of last night’s election, but the currency ultimately finished in the middle of the major currency pack, helped along by rising oil prices.
  • US Data: Second-tier reports were mixed, with the Richmond Fed survey beating expectations but existing home sales coming in a bit soft.
  • Commodities: Oil gained nearly 2% on the day on a report that OPEC was considering deeper production cuts at its December meeting due to weaker global demand forecasts. Gold was essentially flat.
 
  • US indices closed marginally lower on the day, with the tech-heavy Nasdaq leading the late afternoon selloff.
  • Energy stocks (XLE) were the strongest major sector again today, while Technology (XLK) brought up the rear.
  • Stocks on the move:
    • Biogen (BIIB) exploded 26% higher after the company found data to help revive a potential blockbuster Alzheimer drug.
    • McDonalds (MCD) shed -5% after missing earnings estimates for the first time in two years before the bell today.
    • Facebook (FB) fell -4% on the day as more states joined an antitrust probe against the company. Now, 45 states, Guam, and the District of Columbia are working with the New York-led investigation. The company reports earnings next week.
    • Procter & Gamble (PG) gained 3% after the company reported solid earnings and raised its guidance for 2020.
    • Toy maker Hasbro (HAS) shed -17% after reporting disappointing earnings on the back of US-China trade tensions.
    • Under Armour (UA) rose 7% on news that the company’s long-time CEO Kevin Plank was stepping down.
    • Snapchat (SNAP) reported a loss after the bell today. The stock is trading -4% lower in volatile after hours trade as of writing.


From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.