Market Reviews

Blacklisted

Blacklisted

The United States blacklist has gained eight new Chinese technology companies, added to the list on Monday under the Trump administration. The White House accused these eight tech companies of being implicated in human rights violations against Muslim minorities in China’s far-western province of Xinjiang. Two of the companies included on the list are Hangzhou Hikvision Digital Technology Co. and Zhejiang Dahua Technology Co. both companies specialize in video surveillance, that controls nearly a third of the global market for video surveillance, with their cameras all over the world. With China’s Vice Premier Liu He scheduled to arrive in Washington for high-stakes trade talks being viewed by financial markets around the world, the timing for these blacklisted companies seem less than ideal.
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GBP falls as Brexit Talks near Collapse

GBP falls as Brexit Talks near Collapse

Following reports pointed at an imminent breakdown in Brexit talks on Tuesday, the British pound fell over 0.6 % to the lowest level in months, $1.22. Prime Minister Boris Johnson told German Chancellor Angela Markel that a Brexit deal is next to impossible if the European Union wants Northern Ireland to stay in the customs union. With news emerging that the British Government is preparing for the talks to collapse as progress over the last few weeks have been minimal. At writing, the GBP/USD is currently trading at the 1.22231 mark, testing a key support area established way back in early September. We could see a rejection at this support followed with a move to the upside, as a consolidation zone appears to be forming between the 1.22 support and 1.23 resistance areas.
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NZDUSD stages recovery

NZDUSD stages recovery

First of all, according to the newest US ADP report, private business in the United States hires 135 thousand workers in September, which is lower than expected. Also, ISM is a signal for the manufacturing industry shrinking. People worried about the US overall economy. Moreover, the US Dollar Index drops over 99 marks. Secondly, The EU and the United States have threatened to impose tariffs on imported products. The United States will impose a 10% retaliatory tariff on EU aircraft and a 25% retaliatory tariff on agriculture and industrial products. The pessimism environment of global trade, especially between EU and US, benefits for kiwi dollar. Finally, Chinese holiday results in a lack of key data of business and trading activities. Therefore, it makes Asian business under pressure. However, the USD is weak that makes NZD going forwards.
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United States ADP Employment Change and the effects

United States ADP Employment Change and the effects

On this Wednesday (October 2), the latest US ADP reported that 135 thousand workers were employed in private business in the United States in September. It is less than market expectations, which makes the market more worried about the strength of the US labour market and the overall economy. There are more and more signs that the labour market is slowing. As these figures are announced, people are increasingly worried about the strength of the US economy.
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Australia Interest Rates

Australia Interest Rates

During the September meeting, the Reserve Bank of Australia lowered its’ official cash (OCR) rate for the third time this year, to a new record low of 0.75 percent, cutting rates by 25 bps. The Reserve Bank has stated the rate cut has been to support employment and income growth for the Australian economy. Aiming to provide greater confidence that inflation will be consistent with the medium-term target.
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US Factory Activity Shrinks the Most in a Decade

US Factory Activity Shrinks the Most in a Decade

September 2019’s, Institute for Supply Management (ISM) Purchasing Management Index (PMI) dropped to a ten-year low of 47.8, from 49.1 in the previous month. Falling short of market expectations of 50.1. With the manufacturing sector having the steepest month of contraction since June 2009, amid ongoing trade tensions between China and the United States. On the back of this announcement, Gold climbed from monthly lows at the $1,461 per ounce mark to above $1,480. This marks a slight retracement from the recent falls in Gold, mainly caused by the Golden week (national weekly holiday) in China, where historically the price of Gold becomes weaker as Chinese traders take some time off.
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Is the Market Bored with Brexit?

Is the Market Bored with Brexit?

The Supreme Court ruled that the decision of Boris Johnson to prorogue Parliament this month lacked reasonable justification, strengthening the pound. However, the Pound sterling has still been under fresh pressure on rising concern over the Brexit limbo. The PM Boris Johnson told MPs on Wednesday that he would not commit to seek for a Brexit extension, calling it the surrender act.
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Oil Supply Concerns

Oil Supply Concerns

After a sharp rise on Monday, crude oil prices experienced a deep recovery on Tuesday and Wednesday, and West Texas Intermediate (WTI) fell by nearly 6% during this period. However, on Thursday (September 19), International oil prices were moderately higher as the market renewed concerns over the impact of Saudi crude oil facilities on supply performance. US WTI crude oil futures prices hit a high of $59.48 per barrel, while Brent crude futures hit a high of $65.56 per barrel.
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GBP/USD Surges Above 1.25

GBP/USD Surges Above 1.25

European Commission President Juncker told the UK on Thursday (September 19), “We can reach an agreement on the Brexit.” According to British Sky News, Juncker believes that the Brexit agreement can be confirmed by October 31. Juncker said that the UK’s non-agreement to withdraw from Europe will have “disastrous consequences” and said that he is “making every effort to reach an agreement.” He also stated that if the requirements of the security agreement can be met through alternative arrangements, then we do not need a security agreement.
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