Market Brief BoJos Brexit Breaks Through the EU

Market Brief: BoJo’s Brexit Breaks Through the EU

Brexit headlines once again flew hot and heavy today, with the UK government and the EU reaching an agreement, though the prospect of Parliamentary approval this weekend looks tenuous with the DUP vowing to vote against the deal (see more here and here).
Turkish President Erdogan and US VP Pence reportedly reached an agreement to suspend Turkey’s assault on Syria. The Turkish lira gained ground against the US dollar for the third straight day.
FX: The aussie and the kiwi were the strongest major currencies on the day, while the US dollar was the day’s weakest major currency.
US data: Industrial Production (Sept) came in soft at -0.4% vs. -0.2% eyed, though last month’s reading was revised up by 0.2%. US Housing Starts (Sept) were also weaker than expected at just 1256K. Finally, the Philly Fed Manufacturing Survey came in at 5.6, below 7.3 eyed.
Commodities: Both gold and oil traded higher on the day, with oil prices gaining 1% on a late rally to hit their highest levels of the week despite a larger-than-expected buildup of EIA inventories.

US indices finished marginally higher on the day to close at a fresh 4-week high.
Health care stocks (XLV) led the way higher, while Technology (XLK) was the laggard and the only sector to close lower on the day.
Stocks on the move:
- After gapping more than 6% higher on yesterday’s earnings release, Netflix (NFLX) traded lower throughout the day, ultimately closing 3% higher on the day.
- JP Morgan (JPM, +1%) probed its record high near 122.00 intraday after CEO Jamie Dimon delivered another strong quarterly earnings report.
- IBM (IBM) dumped -6% after seeing revenue fall for the fifth consecutive quarter. Recently acquired Red Hat grew revenue 19% in the quarter.
- Marijuana company Cronos (CRON) gapped 25% higher on news that its partially owned Australian subsidiary would IPO next month, but the stock ultimately closed just 5% higher on the day.
- Recent IPO Beyond Meat (BYND) fell -4% today and is now down more than 50% from July’s record high.

From time to time, StoneX Financial 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.

City Index is a trading name of StoneX Financial Pty Ltd.

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.cityindex.com/en-au/terms-and-policies/.

StoneX Financial Pty Ltd, Suite 28.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.