Nick Batsford, CEO of Tip TV, was alongside Richard Hunter, Head of Equities at Hargreaves Lansdown, when he opened the Tip TV Finance Show to discuss the effects of the Paris terror attacks on the financial market, as well as focus on mining companies and the Japanese and US economies.
The market reacts to Paris
Hunter outlined that people have had 2 days over the weekend to react to the terror attacks before the markets have re-opened this week, and thus this extra time has softened the impact on financial markets. Nevertheless, he concluded that anything tourist related will be hit hard and also USD and Gold plays have increased as defensive bets.
Alarm bells for mining companies
Batsford highlighted that the Bloomberg Commodity Index was set up 15 years ago and the reading stood circa 100. Just prior to the financial crisis hit top gear in September 2008 it stood at 238.7. Today the Index stands at an all-time low of 82.07. That sends unprofitable and uncomfortable alarm bells for mining companies ringing. Breakeven has to surely be around circa 120! Is there worse to come? Hunter added that you would expect mining stocks to start to bottom but it is hard to judge as we still have unclear demand from China and India.
US and Japan economies
Hunter noted that prior to Friday evening in Paris, US retail sales were quite weak, and this reflected the end to a poor weak for data coming out of the US. In terms of Japan, he commented that the BoJ polices haven’t had the desired effect, and the weakness in China has resulted in further problems for the Japanese economy.
We are not authorised by the Financial Conduct Authority of England and Wales. The information and/or data on this website is provided by us and any data providers which may be used by us for your general information and use only and is not intended for trading purposes or to address your particular financial or other requirements. In particular, the information and/or data on the website:
(1) does not constitute any form of advice (financial, investment, tax, medical, legal, spread -betting or otherwise); and (2) does not constitute any inducement, invitation or recommendation relating to any of the products listed or referred to; and (3) is not intended to be relied upon by you in making (or refraining to make) any specific investment, placing any bet or making any other decision; and (4) has not been issued or approved by Tip TV for the purposes of section 21 of the Financial Services and Markets Act 2000 (as amended from time to time).
Opinions expressed by speakers in the videos, writers of the blogs are only opinions and not expert advice. These opinions do not necessarily agree with those held by Tip TV, its directors, agents or employees who disclaim any intent to make betting, securities or securities markets recommendations. The value of investments and the income derived from them may fall as well as rise. APPROPRIATE EXPERT INDEPENDENT ADVICE SHOULD BE OBTAINED BEFORE MAKING ANY INVESTMENT, PLACING ANY BET OR MAKING ANY OTHER DECISIONS.
Recommended Content
Editors’ Picks
EUR/USD advances toward 1.1200 on renewed US Dollar weakness
EUR/USD is extending gains toward 1.1200 on Friday, finding fresh demand near 1.1150. Risk sentiment improves and weighs on the US Dollar, allowing the pair to regain traction. The Greenback also reels from the pain of the dovish Fed outlook, with Fedspeak back on tap.
Gold price advances further beyond $2,600 mark, fresh record high
Gold price (XAU/USD) gains positive traction for the second successive day on Friday and advances to a fresh record high, beyond the $2,600 mark during the early European session.
USD/JPY recovers to 143.00 area during BoJ Governor Ueda's presser
USD/JPY stages a recovery toward 143.00 in the European morning following the initial pullback seen after the BoJ's decision to maintain status quo. In the post-meeting press conference, Governor Ueda reiterated that they will adjust the degree of easing if needed.
Shiba Inu is poised for a rally as price action and on-chain metrics signal bullish momentum
Shiba Inu remains strong on Friday after breaking above a symmetrical triangle pattern on Thursday. This breakout signals bullish momentum, further bolstered by a rise in daily new transactions that suggests a potential rally in the coming days.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.