This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
INTEREST-RATE HIKE CHATTER HITS MARKETS; WHAT DOES THIS MEAN?
Despite the tragic events of the past week being at the forefront of everyone’s minds, it’s time to separate all the emotion from the current global climate & start doing what we need to in this business – look forward & plan ahead. US interest rate hike chatter has once again hit the headlines, seeing European stocks lower on the back of a stronger USD (stocks/commodities trading in $ become more expensive, therefore less desirable & liable for a drop). What’s been impacted?….
WHAT IMPACT HAS THIS HAD ALREADY??
Commodity stocks have been 2016’s UK 100 top performers, with mining giants Anglo American & Glencore recovering as much as 150% from their lows following the 2015 mining slump. HOWEVER, talk of an interest rate hike has already taken its toll, with Anglo American falling more than 10% in the last 2 trading sessions. ARE THESE STOCKS NOW SET FOR A CRASH? HAS THE RECENT COMMODITY RALLY BEEN TOO MUCH TOO SOON? Analysts at the well-known brokerage Goldman Sachs seem to think so having downgraded many such companies to ‘Sell’ ratings today.
While certain UK banks have posted recoveries of up to 30% from their 2016 lows, the last few trading sessions have taken a heavy toll. Most of them now sit 10% from their March recovery highs. This begs the question, WHAT ELSE DO WE HAVE IN STORE & ARE YOU PREPARED FOR WHAT’S COMING??
JUNE 23 2016 – judgement day for a possible BREXIT (UK exit from European union) is going to be the STOCK MARKET EVENT OF THE YEAR – with hundreds of UK Index index-point moves potentially up for grabs. Do you know all the facts. Are you properly prepared? Click to receive our Brexit report & get up to speed.
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Have a good Easter weekend!
Tom Soanes, Trader, 24 March
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
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