Russia’s New Forex Law to Kick In October 2020

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Best Choice For Beginners and Middle-Leveled Traders!
    Free Demo Account!
    Free Trading Education!
    Big Sign-Up Bonus!

  • Binomo
    Binomo

    Trustful Broker. Recommended Only For Experienced Traders!

Micro Focus’s major pain is set to continue

Ken Odeluga August 29, 2020 3:49 PM

Though massive beatings could become less frequent from here

The latest and most spectacular collapse of shares in Micro Focus, the FTSE 100 group whose ‘legacy’ software strategy continues to come unstuck, is a dump of as much as 34%. That’s the £4bn group’s deepest one-day collapse since an almost 50% crash on 19 th March 2020. Then, like now, it was downgraded guidance that spooked investors. Holders have become so hypersensitive to possible understatement of revenue downside, they precipitate the very value destruction they’re trying to avoid in the first place. Its another unfortunate consequence of MCRO’s $8.8bn acquisition of Hewlett Packard Enterprise assets that has turned out to be little short of disastrous

There are fair reasons to see Wednesday’s slump as even more of an over-reaction. The stock remained 30% lower into afternoon trading, despite only a fairly marginal downgrade of already dire expectations. The group reduced guidance of its expected full-year revenue decline to a range of -6% to -8% in constant currency terms, from -4% to -6% before. The cut looks just as symbolic as it might be material. That’s assuming the group even has sufficient visibility to predict a two-percentage point sales growth reduction, at the midpoint, relative to previous forecast. Either way, it’s hard to square the toasting of £1bn-plus in market value over a change that could be worth about $69m, given 2020 revenues seen around $343bn. (MCRO reports results in dollars).

There’s no question MCRO’s outlook remains deeply unattractive, but the case for ‘rock bottom’ is growing more cogent:

  • The new CEO had already began to jettison weak assets after launching a review process some months, before MCRO’s latest downgrade
  • After Thursday’s drama, Stephen Murdoch is doubling down: “Following the recent disappointing trading performance, we have determined that it is appropriate to accelerate the undertaking of a strategic review.” No further details are offered for now
  • His approach has already resulted in the disposal of SUSE (a Linux pioneer) for $2.54bn. Further ‘bolt-off’ disposals are probable as MCRO unwinds years of bolt-on buys with questionable rationales
  • Asset sales subsequent to Elliott Management’s stake build are almost certainly not coincidental
  • At multiple of 5 times 2020’s estimated $860m free cash flow, MCRO ought to tempt buyers, though the concept of a wholesale buy-out would hold more water further down the line
  • The medium-term focus remains on continued disposals of least-accretive units
  • That won’t dial down the stock price pain any time soon. Therefore—upticks aside—further downside into Q4 is likely

Chart thoughts

  • Technically speaking, MCRO is nowhere near ‘rock-bottom’. It has held off from March 2020’s 771p low by some margin, also avoiding long-term support initially codified by October 2020’s 969p low
  • The 78.6% retracement of its April 2020-July 2020 top has assisted the stock on Thursday
  • Based on a Relative Strength Index (RSI) that hasn’t been more oversold in 16 months, MCRO has a greater chance of a melt-up than of melting down further
  • Counter-arguments include that the huge gap opened Thursday is reinforced by a 61.8% retracement interval
  • That is pennies away from a double-tagged kick-back low from late December ‘18/early-January ’19
  • The underside of the determined buying seen then should be an obdurate resistance to go higher from here, unless there’s significant fundamental improvement

Micro Focus CFD – Daily

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Crude oil drops for third day amid growing demand concerns

Fawad Razaqzada February 6, 2020 10:56 AM

Crude oil prices are lower for the third day, after Brent and WTI both hit new highs for the year on Monday following a sharp kick-back rally in January. The political crisis in Venezuela was part of the reason prices were rising in previous weeks, but this seems to have been priced in by now. In any case, it is likely that other OPEC countries will step up production to compensate for any potential loss from Venezuela due to sanctions from the West. Looking ahead, the 2020 demand outlook for oil is not great, while the prospects of increased shale supply and competition elsewhere could keep the pressure on prices. That being said, the downside could be limited as the OPEC and 10 partner producers outside the cartel are supposed to be actively managing output in an effort to rebalance the market.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Best Choice For Beginners and Middle-Leveled Traders!
    Free Demo Account!
    Free Trading Education!
    Big Sign-Up Bonus!

  • Binomo
    Binomo

    Trustful Broker. Recommended Only For Experienced Traders!

In the near term, demand concerns could keep prices under pressure, with China slowing down and concerns are rising over a recession in Germany. In a latest sign of a slowdown in Eurozone’s largest economy, German factory orders unexpectedly slumped 1.6% in December. After a 0.2% decline in the third quarter, some economists predict the German economy to have shrank again in Q4, thus putting it in a technical recession. The official growth figure from Destatis will be published next Thursday. Italy, meanwhile, has already fallen in a recession as its GDP contracted 0.2% in Q4 following a contraction of 0.1% in the July to September period. So, things aren’t great in the Eurozone, and this bodes ill for demand for oil from one of the biggest economic regions of the world. Meanwhile, the latest factory data from the world’s largest economy wasn’t great either on Monday, with orders here unexpectedly falling by 0.6% month-on-month in December following a 2.1% decline the month before.

The very short-term focus will now be on the official US oil inventories data from the Energy Information Administration (EIA) due for release later this afternoon. Last night, the American Petroleum Institute (API) reported inventory data that disappointed expectations with a headline stockpiles build of 2.5 million barrels vs. 1.4 million expected. The potential is therefore there for the EIA data to disappoint expectations today, potentially leading to renewed selling pressure in oil. However, if we see a surprise drawdown then this could potentially cause prices to rebound.

WTI: Breaking down from a bear flag?

From a technical point of view, the latest drop in oil prices could be a worrying sign for the bulls. For one, both Brent and WTI have so far failed to hold above January’s highs. Admittedly, the month of February has just begun. Still, you’d expect to see some immediate follow-through in momentum had the trend still been bullish. For another, the WTI contract is breaking below its short-term bullish channel, or a bear flag pattern if you believe the trend since October is still bearish.

With WTI breaking below the $53.50 short-term support and outside of the flag pattern, the bears would be keen to see if there will be acceptance below this level now. If so, prices could head sharply lower over the coming days with the potential to drop to the next big level at $50.00, or even lower over time. However, if WTI were to go back above the broken $53.50 level now, and hold there on a closing basis, then this would suggest selling pressure was weak. In this potential scenario we could see a quick rally back to towards and possibly above the highs of this year at $55.70s.

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Top 5 Things to Know in the Market on Thursday

Investing.com — Quiet descends on global markets as the U.S. celebrates Thanksgiving. Asian and European markets stutter after President Donald Trump signs into law the bill supporting Hong Kong’s pro-democracy movement, on fears that it will further delay meaningful detente on trade. Elsewhere, Britain’s Conservatives look on course for a resounding win in the general election in December, and the euro zone’s economy looks more and more like bottoming out. Here’s what you need to know in financial markets on Thursday, 28th November.

1. Trump signs Hong Kong bill

President Donald Trump signed into law the Hong Kong Human Rights and Democracy Act, effectively putting China’s treatment of pro-democracy protests at the heart of U.S. trade policy toward the country. Trump also signed an order banning the export to China of crowd control munitions such as tear gas.

The move threatens to further complicate trade negotiations, given Beijing’s sensitivity to what it considers an infringement of its sovereignty. However, it comes after a week that showed the U.S. economy withstanding the pressure of the trade war better than China’s.

While Beijing repeated its condemnation of the bill and threatened countermeasures, it has so far not taken any action.

2. Global stocks stall on fear of new delay to trade deal

Global stock markets retreated after seeing another hurdle raised to the oft-promised-but-never-delivered ‘phase-1’ deal on trade between the U.S. and China.

The Euro Stoxx 600 had closed on Wednesday within 1% of its first all-time high in four and a half years but fell 0.2% at the open and drifted sideways from there. The Shanghai Composite composite index fell 0.5%.

By 6 AM ET (1100 GMT), Dow futures were down 83 points or 0.3%, while S&P 500 futures were down 0.2% and Nasdaq 100 futures were down 0.3%. All cash stock and bond markets in the U.S. will, however, be closed for Thanksgiving.

3. Pound rises as Conservatives close in on U.K. election victory

U.K.-focused assets rallied after a much-anticipated opinion poll by YouGov showed the Conservative Party on course for its biggest election victory in over 30 years.

The YouGov poll predicted a Tory majority of 68 seats in the new parliament. That’s big enough not only to ensure the passage of Prime Minister Boris Johnson’s EU Withdrawal Bill, but also arguably big enough for him to face down hardline Brexiteers who will be expected to press for a thorough rupture with the EU’s standards and regulations as the U.K. negotiates its future trading arrangements.

The pound hit a six-month high against the euro on the news, but failed to make fresh highs against the dollar , where it remains firmly capped below $1.3000. The FTSE 100 fell 0.4%, but the more domestically focused FTSE 250 rose 0.2%, while the 10-year Gilt yield fell three basis points to 0.63% before bouncing a little.

4. Indian Supreme Court rattles telecoms sector

One of the world’s biggest telecoms market was thrown into turmoil as India’s Supreme Court ruled that the country’s leading network operators must pay the government an extra $13 billion in network-related fees.

The ruling threatens the viability of the three biggest carriers in the country – Bhati Airtel and Vodafone Idea. Vodafone (LON: VOD ) in the U.K. fell over 3% on the news.

The government of Prime Minister Narendra Modi has signalled that it may offer the operators relief, possibly in the form of deferring payment for new spectrum rights. Analysts see that as a preferable political alternative to the loss of competition that would follow the collapse of Bhati and Idea.

5. Euro zone close to bottoming out

There were fresh signs of a bottoming out in the eurozone economy as the European Commission’s economic sentiment index , which includes both business and consumer sentiment, rose more than expected to 101.3 in November.

In addition, the European Central Bank said M1 monetary growth, one of the more reliable leading indicators of the economy, increased to an annual rate of 8.4% in October, from 7.9% in September.

Preliminary German consumer inflation data for November avoided any negative surprises, although the same could not be said for Italy’s producer prices , which fell at their fastest rate in over three years in October.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Best Choice For Beginners and Middle-Leveled Traders!
    Free Demo Account!
    Free Trading Education!
    Big Sign-Up Bonus!

  • Binomo
    Binomo

    Trustful Broker. Recommended Only For Experienced Traders!

Like this post? Please share to your friends:
Binary Options: How To Start Trading
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: