Market News & Analysis
Trade truce and Google's first trillion set the tone
Fiona Cincotta January 17, 2020 8:48 PM
Google breaking through the $1 trillion barrier of market capitalization and the newly approved trade deal between the US, Canada and Mexico helped the market rally at the end of the week, a week which has already seen a big turnaround in sentiment following the signing of the first part of the Sino-US trade deal. The newly found trade truce means China is expected to buy $95 billion more worth of US commodities than in 2017 and an additional $100 billion worth of goods and services compared with 2017.
NMC hits back, IAG scraps non-European cap
Abu Dhabi-based NMC Health has hired a former head of the FBI as it continues to fight back allegations of over-payment for acquisitions and hiding the full scale of its debts. Shares rallied 7.29%, the highest level this week, but have still some way to go before clawing back the 48% loss following the report made by short seller Muddy Waters in December.
British Airways owner IAG also bounced in early trade after it decided to stop capping ownership from non-European investors.
Chinese economic data provided a rare upbeat signal as the country’s GDP showed less of a decline in growth than markets had expected. Although the trade war did affect some parts of China’s economy its GDP still grew at 6.1%.
The pound is back up at $1.31, the highest level in the week, as investors are positioning themselves against a potential Bank of England rate cut in January.
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.