Market Summary 4/12/18

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Market Summary 4/12/18

Shrey Srivastava

4th December 2018

 

Trump eases on China

China’s currency the renminbi has seen its biggest two day rise in more than 10 years as US President Donald Trump has signalled his intentions to reduce the pace of tariff increases on certain key materials and products coming in from China[1].

 

Boost for sterling from the ECJ

Sterling rose to session highs after the advisor general to the European Court of Justice (ECJ) expressed his opinion that the UK could theoretically reverse Brexit without asking the other 27 member states of the EU.[2]

 

Qatar to exit OPEC

After worsening relations with numerous Gulf states including Saudi Arabia, Qatar has announced that it is to leave OPEC in January 2019, slightly weakening the cartel’s grip over global oil prices. The exit has more of a symbolic than material impact.[3]

 

Shell to set target on carbon footprint

In a boost in the fight against climate change, Royal Dutch Shell has announced that next year it will set targets for carbon emissions, and link them to the pay of their senior executives.[4]

 

Amazon, Apple and Microsoft vie for world’s most valuable company

Amazon briefly became the most valuable company in the world on Monday when its market capitalisation exceeded that of Apple, who itself had surpassed Microsoft the previous week in the rankings. At the end of the day Apple retained its number 1 spot.[5]

 

Turkish lira drops after traders fear loose policy

After Turkish inflation came out below expectations in November the Turkish lira has dropped on fears that the Turkish central bank will see it as an opportunity to lower domestic interest rates. Rates currently stand at 24%.[6]

 

Google CEO to testify before Congress

Google CEO Sundar Pichai is to testify before the US Congress over many criticisms of the company, including the fact that it allegedly suppresses certain search results for political motives. It will be Pichai’s first testimonial before Congress.[7]

 

US 10 year yield falls to near 3 month low

The yield on 10-year US treasuries has been pushed to a near 3 month low after investors suspect that Jerome Powell (the chairman of the US Federal Reserve) will reduce the pace of further interest rate rises.[8]

 

Bibliography:

[1] Ft.com. (2018). China’s renminbi in biggest two-day rise since 2005 revaluation | Financial Times. [online] Available at: https://www.ft.com/content/0b8d2c70-f7c0-11e8-8b7c-6fa24bd5409c [Accessed 4 Dec. 2018].

[2] Reid, D. (2018). Sterling rises after top EU court advisor says UK can cancel Brexit without asking for permission. [online] CNBC. Available at: https://www.cnbc.com/2018/12/03/brexit-eu-top-court-is-set-to-rule-on-article-50.html [Accessed 4 Dec. 2018].

[3] Sabga, P. (2018). Qatar quits OPEC as Saudis walk tightrope on oil prices. [online] Aljazeera.com. Available at: https://www.aljazeera.com/news/2018/12/qatar-quits-opec-saudis-walk-tightrope-oil-prices-181203222739862.html [Accessed 4 Dec. 2018].

[4] Ft.com. (2018). Shell yields to investors by setting target on carbon footprint | Financial Times. [online] Available at: https://www.ft.com/content/de658f94-f616-11e8-af46-2022a0b02a6c [Accessed 4 Dec. 2018].

[5] Ft.com. (2018). Amazon briefly tops Apple and Microsoft to be world’s biggest company | Financial Times. [online] Available at: https://www.ft.com/content/3735d8e0-f72f-11e8-8b7c-6fa24bd5409c [Accessed 4 Dec. 2018].

[6] Ft.com. (2018). Turkish lira dips as traders fret about loose monetary policy | Financial Times. [online] Available at: https://www.ft.com/content/98fd03e0-f7cb-11e8-af46-2022a0b02a6c [Accessed 4 Dec. 2018].

[7] Ft.com. (2018). Google chief prepares to testify before Congress | Financial Times. [online] Available at: https://www.ft.com/content/4c629e28-f4d3-11e8-ae55-df4bf40f9d0d [Accessed 4 Dec. 2018].

[8] Ft.com. (2018). Treasury rally pushes 10-year yield to near 3-month low | Financial Times. [online] Available at: https://www.ft.com/content/debfd8d2-f72e-11e8-af46-2022a0b02a6c [Accessed 4 Dec. 2018].

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