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Accendo Press Quotes – Week Ending 10 Jun
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- Mike van Dulken, Head of Research at Accendo Markets said: “Equity indices have gone for a dress-down and risk-off Friday, with major support levels breached or seeing meaningful tests. This is derived from Asian bourses following their stateside peers south as negative bond yields become more prevalent, calling into question global monetary stimulus efforts while growth and inflation struggle to recover post-crisis. And with event-risk related to next week’s Fed policy update and a too-close-to-call UK referendum on EU membership the week after, investors are continuing to temper their appetite for risk assets into the week-end.”
- https://www.theguardian.com/business/marketforceslive/2016/jun/10/randgold-and-fresnillo-buck-falling-UK Index -100
Wall St Journal
- “The hunt for yield has become increasingly difficult for investors,” said Mike van Dulken, head of research at Accendo Markets. “Some investors are so concerned that they are prepared to take the hit — a potential guaranteed loss rather than sitting on huge volatility,” he said.
- As a more short-term factor, Mike van Dulken, head of research at Accendo Markets, believes that gold’s recent rally is also being fuelled by investor fears over a potential Brexit in a couple of weeks’ time. He says such safe haven investments “could well see the yellow metal back to five week falling highs around $1266.”
- ‘Sainsbury’s shares have already bid farewell to early gains of 2% to trade flat as reality sinks in and investors focus on a six-week share price downtrend,’ said Mike van Dulken, head of research at Accendo Markets.
- ‘The chief executive may see Sainsbury’s continuing to outperform rivals but shareholders refuse to ignore the sector reality that lower prices and rather aggressive competition is benefiting customers more than them.’
- http://citywire.co.uk/money/miners-bolster-UK Index -as-china-boosts-copper/a917356
- European stocks are rallying “thanks to Fed Chair Janet Yellen adopting – as expected – a more dovish tone in the wake of Friday’s US jobs data, effectively scrubbing a June rate hike from the FOMC calendar,” Michael van Dulken, head of research at Accendo Markets in London, said in a note. “Yellen made every effort to deliver a positive assessment of the US economy, but her mention of uncertainties such as Brexit and China highlight the importance of the situation outside the US. This could yet see market expectations for the next rate hike pushed back even further given the calendar of event risk facing markets into year-end.”
- Mike van Dulken, head of research at Accendo Markets, said: Mining stocks are topping the UK 100 this morning as the commodities space benefits from a weaker US dollar basket, back below the key 95 level for first time in a fortnight. The currency’s reversal of recent strength comes in response to Friday’s surprisingly weak May US jobs report that must be considered a setback for Janet Yellen and [the Federal Reserve] in terms of ability to tighten US monetary policy further this summer.
- https://www.theguardian.com/business/marketforceslive/2016/jun/06/UK Index -boosted-by-mining-shares-but-easyjet-falls-on-flight-cancellations
- “Mining stocks are topping the UK 100 as the commodities space benefits from a weaker U.S. dollar basket. The currency’s reversal of recent strength comes in response to Friday’s surprisingly weak May U.S. jobs report,” Mike van Dulken, head of research at Accendo Markets, said.
- “If the Fed Chair had hoped for a relaxing weekend away, Friday’s data must have put paid to that with today’s scheduled speech requiring more than a gentle redraft,” said Mike van Dulken, head of research at Accendo Markets. “Markets will be expecting hear a tempering of recent hawkishness about a summer rate rise being ‘possible’. A rate rise is always possible, but it really would be a surprise for markets that have already reversed their bets.”
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Prepared by Michael van Dulken, Head of Research