CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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.

Pound and Stocks fall as geopolitics weighs

16:23 8 October 2019

Summary:

  • GBPUSD falls to 1-month low below $1.22 as Brexit concerns weigh

  • Most indices in the red as US-China hopes fade

  • Domino’s recovers after earnings miss

  • DE30 falls below 12000

 

The pound is the worst performing major currency today, dropping against all its peers as any hopes that the UK and EU will agree upon a new Brexit deal seem to be slipping away. The rhetoric from both sides has become increasingly hostile with each party looking to blame the other for the failure to make any progress. The largest declines for GBP can be seen against NZD, CHF and JPY with these crosses all lower by 1% or more on the day while the GBPUSD has dipped below the $1.22 handle to trade at its lowest level in 5 weeks. Traders should keep an eye on any further Brexit headlines while the USD could be sensitive to a speech from Fed chair Powell this evening scheduled at 7:30 PM (BST).

 

Political tensions are also having an adverse impact on stocks as  Hopes for a major breakthrough on the US-China trade front this week are looking increasingly mis-placed after the Trump administration announced overnight that 8 Chinese tech giants would be blacklisted. China are expected to retaliate against the move and these latest developments don’t appear to be the sort that would occur shortly before tangible progress is made.

 

One stock that is attracting unwanted attention this afternoon is Dominos Pizza after the firm announced a largely disappointing set of results. Earnings per share for the fiscal 3rd quarter was $2.05 below the Street’s estimate of $2.07. Revenue also missed, coming in a t $820.8M vs 823.9M exp. While net sales rose by 4.4%, this was less than expected.  The pizza chain now expects U.S. same-store sales growth in a range of 2% to 5%, down from a prior range of 3% to 6%. The outlook for international same-store sales growth was slashed from a range of 3% to 6% to a range of 1% to 4%. Shares began sharply lower somewhere in the region of 5% but buyers have stepped in and the stock is back in the green by the European close. 

 

The German DE30 failed to break above the resistance zone ranging below the 50% Fibo level (12150 pts) of the latest major downward impulse this morning and the market has continued lower to trade back below the psychological 12000 level. The index has moved off its lows into the cash close but is still just shy of the big round number at the time of writing.

 

This content has been created by X-Trade Brokers Dom Maklerski S.A. This service is provided by X-Trade Brokers Dom Maklerski S.A. (X-Trade Brokers Brokerage House joint-stock company), with its registered office in Warsaw, at Ogrodowa 58, 00-876 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. X-Trade Brokers Dom Maklerski S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

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