Here are some news of the day that a forex trader should not miss.
With a positive view on the process of trade negotiations, Asian stocks rallied after US stocks and Treasury bond yields both increased. The futures markets in Japan, Hong Kong and Australia also went up, while the Dollar slipped. The Pound hit its peak in the past 7 months against the greenback as traders are betting on the Conservative victory in next week's election. Elsewhere, oil surged as Energy Information data showed US oil reserves fell more than expected and gold slipped.
The IPO activities in Hong Kong are enjoying the hottest quarter from retail investors in 4 years. The average rate of IPO registration of small companies since the beginning of October is 13 times higher. This is the highest since the second quarter of 2015. Previously, retail investors received orders to buy in 180 times. times the number of offers, when the market is at its peak. Now the Hang Seng is almost unchanged for the year. The popularity of the listing came when the share issuance in Hong Kong achieved a phenomenal growth by the end of the year despite protests and market volatility from the U.S.-China trade war. Quoc. Hong Kong is on track to surpass 2018 in terms of IPOs, with raised capital of $36.6 billion to date, leaving only another $200 million short of the total raised last year - the highest level. since 2010. Incremental share issue worth $12.9 billion of Alibaba Group Holding Ltd. last month brought a tremendous boost to the financial center.
Private joint stock companies are preparing for a recession and offering safeguards to limit their risks. On Tuesday, Ms. Alison Mass, President of investment bank Goldman Sachs Group Inc. "All our clients are focused on preparing for a recession. For some, it will not be possible to maintain an orderly capital structure if the economy maintains," he said. I was in Asia earlier this fall and witnessed the head of a private equity firm with assets all over the world, and he said he gave a recession checklist for Each CEO has 9 criteria.The checklist includes: talking to suppliers and asking them to extend terms, limit capital spending on important items and hire only employees. necessary." The industriousness of private equity firms is signaling a concern that an economic downturn may appear in the future. For now, everyone agrees to predict that within the next year, the US economy will likely fall into recession.
The Chinese financial market has witness a not-before-seen sense of tranquility. Stocks and bonds of government really dropped their pace. The Shanghai Composite Index experienced an unprecedentedly low volatility for nearly 2 years. Meanwhile, the benchmark yield of 10-year bonds is moving within the tightest range over the last 7 years. Although the renminbi is quite good. dramatic this week, but its volatility has remained at its lowest level since August.
Suddenly everything has been quiet as markets in other parts of the world are revolving around every new development of the ongoing trade war. This makes some people wonder if Beijing would take action to curb volatility in its market - something the administration has done before. Though not much direct intervention are done to stocks or the yuan, the national media has appeared to support the stock market recently.