CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

US market volatility low Walt Disney in focus

Article By: ,  Senior Market Analyst
February 8, 2017 3:43 PM

There is a distinct lack of volatility in the markets as trading kicks off mid-week in the US; both the S&P and the Dow Jones are seen moving lower by 0.2%, one of the largest moves in the S&P for many sessions.

Volatility at multi-year low

Interesting the VIX index which measures the level of volatility in the market has been steadily moving lower since the beginning of the year and volatility is now at the lowest level it has been since 2014. This is the opposite to what we would have expected to see with Trump taking the reins; the expectation was that Trump would send volatility off the scale – this just hasn’t happened. One reason we haven’t seen the type of volatility we were expecting is the detail is not coming through in Trump’s 2am tweets. In the near term the lack of volatility is expected to continue but down the line when more detail feeds through regarding policies, taxes and deregulation there will be the potential for more exaggerated moves.

Energy sector lower ahead of inventory data

The energy sector is posting the largest losses as crude oil continues to sell off ahead of the EPI inventory data due in the next hour. Crude inventory data in the previous session showed that US shale producers have been quietly ramping up output to levels not seen since 1970, changing the supply demand dynamic and in doing so pulling crude lower.

Media stocks are one of the few areas offering support as investors digest mixed earnings from Walt Disney and a beat on estimates from Time Warner.

Walt Disney rallies on news CEO could stay

Walt Disney posted results after the bell yesterday and although it beat forecasts on profits, earnings came in weaker than expected. Delving deeper into the figures weakness in earnings stemmed from ESPN and a serious decline in subscriber numbers, whilst strength came from parks and visitor centres and particularly from films which have consistently been an excellent profit generator. Looking ahead Disney has plans for several big films over the next few years so profit generation should remain strong. On release the initial (grey) market reaction was of disappointment, however on the news that CEO, Bob Iger, may stay past his contract end in 2018, shares rallied. Walt Disney opened up 2% in today’s session and is currently trading around levels not seen since 2015.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024