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Accendo Press Quotes – Week Ending 3 Jun
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- “With crude futures initially tanking after Opec said (surprise, surprise) it had not agreed on anything to do with oil supply (but why should it have?), they were able to recover back towards the $50 level on another drawdown in US inventories, said Augustin Eden at Accendo Markets.”
- “In focus today will be – surprise, surprise – this afternoon’s US employment report given its significance within the wide spectrum of data that the US central bank – the Federal Reserve – monitors whilst debating the path for US monetary policy that ultimately has global market-moving ramifications,” said Mike van Dulken, head of research at Accendo Markets.
- Mike van Dulken at Accendo markets noted “typical apprehension given the busy line-up for risk events today: ECB and OPEC meetings, plus key data and speakers”
- “No changes [are] expected in terms of monetary policy or oil supply, respectively, but markets always keen for updated rhetoric and fresh forward guidance,” Mike van Dulken and Augustin Eden, analysts at Accendo Markets, said. As for OPEC “talk of a new output ceiling was swiftly cut down by Iran yesterday and there’s not much, other than talking about output ceilings, that the cartel can do to move prices these days,”
UK Index Global Markets
- “Although an OPEC spokesman has just called the meeting ‘excellent,’ no agreement was reached on anything to do with helping the oil price (by helping I do of course mean ‘increasing’). But then again, why should there have been?”
- “Today’s losses come after a raft of mixed data from across the globe. A more prominent bearish sentiment is now overpowering the hitherto bullish dominance that had ushered us to recent highs,” said Mike van Dulken, head of research at Accendo Markets.
- Meanwhile, Mike van Dulken, of Accendo Markets, said: “The negative start comes after a red session in Asia, following the US lead. This as markets digest a raft of mixed economic data that has dented optimism as we kick off the new month; Aussie Manufacturing PMI offsetting positive GDP, Japanese Capital spending slowing and Chinese PMI manufacturing failing to inspire. Sentiment still fragile it would seem while the Fed shouts about a summer rate hike and UK Brexit polls suggest the Leave camp taking the lead.”
- Mike van Dulken, Accendo Markets: “Equities nursing losses this morning as yesterday’s breakdowns from comfortable consolidation/uptrends yesterday gather pace. This comes after a revival of geopolitical risk (Brexit poll) and a raft of mixed data from across the globe (run of poor US manufacturing; China and Eurozone PMIs failing to inspire; UK Consumers delaying borrowing.”
- (http://www.telegraph.co.uk/business/2016/06/01/UK Index -100-slumps-to-one-week-low-as-oecd-cautions-of-dismal-globa/)
- Augustin Eden at Accendo Markets said: “The USD is still in consolidation mode, with a break above its 100-day moving average encouraging for bulls, who’ll be jumping on Janet Yellen’s comments that indicated a ‘summer’ US rate hike might be on the cards.”
- (http://www.proactiveinvestors.co.uk/companies/market_reports/126540/eurozone-data-and-falling-oil-prices-dent-UK Index -100-index-126540.html)
- Accendo Markets’ Mike van Dulken told Business Insider: “The driver this afternoon is the latest poll showing the Leave camp taking a surprise lead, undoing of a lot of the currency’s recent good work to get back above 1.46 and sit close to 2016 highs. Polls of late had been showing the Remain camp comfortably in the lead, in some cases by quite a margin, which had helped GBP and many UK-exposed stocks rally on the prospect of the status quo being better than a jump into the unknown. The latest ICM phone poll shows a reversal of an 8pt lead by Remain to a 3pt deficit in the space of just 2 weeks. With less than three weeks to go though, be prepared for the polls to swing around even more as both camp trade blows over the merits of their respective campaigns.”
- Augustin Eden, analyst at Accendo Markets, said: “The UK 100 is still in the midst of sideways consolidation, but with a welcome test of last week’s 6,280 ceiling and a close venture to 6,300.”
- “Don’t get hung up on this meeting though – there will be no production cuts announced, let alone agreed upon, and there’s little else to be gleaned from OPEC these days in terms of indications of future pricing for oil,” Accendo Markets said in a note on Wednesday.
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Prepared by Michael van Dulken, Head of Research