European bears continue eating into last week’s gains

The soft Chinese inflation figures edge its government closer to providing a fresh round of stimulus, while the hunt to fill the top job at Barclays appears to have gone full circle. 

Traders outside the London Stock Exchange
Source: Bloomberg

Considering the previous day had seen the UK return to negative inflation for only the second time since the 60’s, it was hardly surprising that China’s overnight inflation figures disappointed. As oil prices continue to sag this is arguably a return to bad news being good, as it will no doubt give the Chinese government a prod in the ribs that fresh stimulus is required.

Precious metal miner Fresnillo has updated the markets with improved production figures, partially offsetting the crumbling gold and silver prices. Regardless of how optimistic resource and production data might be, the threat of increased interest rate rises highlighting the lack of income that precious metals afford  continues to hang over the company like a black cloud.

The Barclays top job is set to be finally filled in the coming days. The board appear to have gone full circle in targeting ex-JP Morgan investment banker, Jes Staley – an appointment that goes some way to highlighting just how wide the gulf in opinion of ex-CEO Jenkins and the board had become.

JP Morgan Chase’s figures were suitably disappointing, in that the company has announced it will be targeting a fresh $500 million of cost cutting. Considering it has already reduced the head count by 10,000 this year, the worry will be that it is no longer just the fat that is being cut.

Twitter too has taken drastic action with last night’s announcement that it will be reducing staffing by 8%. Considering this was a company that just two years ago embarked upon an IPO whose fund raising was built upon company expansion and development, this announcement makes for particularly depressing reading. We are expecting the Dow Jones to open broadly flat from Tuesday’s close at 16,967.  

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts

Een artikel zoeken

Form has failed to submit. Please contact IG directly.

  • Ik wens per e-mail informatie van IG Group bedrijven te ontvangen over handelsideeën en IG's producten en diensten.

Voor meer informatie over hoe wij uw gegevens mogelijk kunnen gebruiken, bekijkt u ons Privacy- en toegangsbeleid en onze privacy website.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.