Market News & Analysis

Top Story

The virus is back

Three issues are dominating the markets this morning: the return of China’s coronavirus, the European Central Bank meeting and the approval of the final Brexit bill.

FTSE stocks with exposure to Chinese markets such as miners, particularly the heavy-volume trade such as Glencore, hotel chains and airlines and HSBC bank are all dropping now that the spread of the coronavirus seems to have intensified. Even miner Anglo-American which reported a 4% increase in output dropped amid the virus news flow. China has quarantined Wuhan where the virus seems to have originated, preventing any transport in and out of the city of 11 million. The biggest concern remains that the virus will spread faster than usual because of the start of the Chinese New Year festivities, which sees large swathes of population travel across the country over a week-long period.

Is the mood about to change at the ECB?

When the ECB meets under the helm of Christine Lagarde later today it is not expected to change current interest rates but recent flickers of hope in the European economy could cause the bank to revise its narrative towards a more neutral rate stance rather than a dovish one. The euro is trading unconvincingly higher against the pound ahead of the meeting and marginally weaker against the dollar, reflecting investors' lack of conviction about a significant change ahead.

Boris’ “no children” bill passes

Parliament has approved the final version of the Brexit bill which was held up in the Lords earlier this week because it had cut out Britain’s commitment to take in the children of immigrants but now the bill just needs Her Majesty’s approval before it becomes final and guarantees Britain’s departure from Europe at the end of next week. The pound is a touch weaker against the dollar but it is holding firm above the $1.31 line.

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.