European Market Wrap: Chesapeake, Facebook, Coronavirus And EUR/GBP

European Market Wrap: Chesapeake, Facebook, Coronavirus And EUR/GBP


Inspiration

“There is no harm in being sometimes wrong, especially if one is promptly found out.” – John Maynard Keynes

Markets

It was a downbeat start to the week, with shares in Asia falling after the late drop on Wall Street Friday. European shares are headed lower in early trading and Wall Street futures are sluggish.

The was in demand as a haven last week, but the , and other G10 FX are staging a recovery on Monday.

prices rebounded sharply off $1750 per oz on Friday and sits under $10 short of new 8-year highs. The price of oil is lower with again dropping below $40 per barrel. is off 1.5% at $37.92.

Coronavirus

News about the rising spread of the coronavirus didn’t get much better over the weekend. A total of 10 million cases worldwide, a new record daily rise in total US cases, along with new spikes in Texas and Florida were all bad omens for the trajectory of the pandemic.

Chesapeake

Top US shale producer Chesapeake energy finally succumbed to years of high debts and crushed oil prices by filing for bankruptcy protection. It has agreed a series of credit lines to keep it operating through the Chapter 11. With debt writeoffs and a lot more asset sales, the company might come out of the other side, but at a greatly reduced scale. It’s been a strangely good time for bankrupt companies (Hertz (NYSE:)) in the last month, so who knows?

Facebook Boycotts

Shares in Facebook and other top tech stocks fell heavily in Friday’s sell-off, as investors took profits near record highs. Facebook shares will be in focus again on Monday, as the company feels the pressure of more top advertisers ‘pausing’ ad spending on the platform in support of the ‘stop hate for profit’ campaign initiated after the killing of George Floyd. The financial impact of a few advertisers, even big ones like Unilever (NYSE:) and Coca-Cola (NYSE:) pulling spending on Facebook’s $70 billion annual haul will be minimal. Investors will just be mindful of any kind of snowball effect.

Chart: EUR/GBP (4-months)

EUR/GBP Chart

EUR/GBP has moved to a 3-month high, having held consistently above the 0.90. A new rally to 0.95 would see price back at the March peak.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link

London Capital Group


Leave a Reply

Your email address will not be published. Required fields are marked *


About us

InvestLab is a financial services technology company focused on the global trading market. Founded in 2010 in Hong Kong, the company develops trading, market data, and social research products that enable individual investors and small to mid-size brokers to access global markets. We provide brokers and financial institutions cross border capabilities for retail investors into 43 markets globally.


CONTACT US

CALL US ANYTIME