SGM-FX insights

Emerging Market Shift   In the first half of 2020, lockdowns pervaded in much of the Western World. Despite the cause for economic concern in the world’s most developed economies, there was also cause for optimism with a new vaccine that promised to provide a conclusive end to the pandemic approved by one regulator or […]

Chinese companies listing in the USA   Many if not most US investors who buy Chinese stocks listed on US stock exchanges such as NYSE and Nasdaq believe that they are invested in the parent companies in China. There are two risks to that scenario: firstly they are invested in something called VIE’s or Variable […]

Germany   The post WW2 economic power house that is Germany currently looks a bit dented with economic growth for full year 2021 predicted to be 3.7%. So far so good. However what has market analysts scratching their heads is yesterday’s news of ballooning borrowing but much reduced production due to both supply chain and […]

Or Not.   As we wrote about last week, the decision to close the economy of New Zealand due to a suspected case of coronavirus within the community took a heavy toll on NZD. Against the US Dollar, the Kiwi did not find support at its recent lows reached earlier this month and set new […]

American August   Traditionally the time of tropical storms being given names and then often turning into hurricanes in the Caribbean, it is also the time that with trading bosses away on holiday, their deputies tend to react and over react to economic and political news which, in markets that are less liquid leading up […]

Spain   The first tranche of EUR 9 billion funding was dispensed to Spain yesterday. There is a further EUR 60.5 billion promised to Spain from the overall EU EUR 800 billion recovery fund. Spain plans to revitalise its economy with these funds by digitising it and becoming greener. The question is whether those measures […]

Japanese Inflation   Generally when a country’s wholesale price inflation hits a 13 year high, markets reach for tin helmets and dig in, but in the case of Japan it has been met with more ho hum and smiles of disbelief given the lack of meaningful growth in Japan for many years. Global commodity inflation […]

Sub 1% UK Mortgage Club   UK banks are vying with each other to capture market share with some historically cheap deals which will free equity to invest in either property or other assets. For example HSBC is offering 2 year fixed at 0.89% and 5 year fixed for 0.99% while Lloyds Bank owned Halifax […]

German Federal Election   Considering that the Elections are next month on September 26 and represent the changing of a long standing but now old order when Angela Merkel, in power since 2005, stands down, it is surprising that there is not more written about the standing of the various parties and candidates. Let’s let […]

Central Europe   Leading hawks at the Hungarian and Czech central banks are setting the pace which means that with their pre-emptive anti-inflationary measures of rate rise programmes, their currencies respectively the HUF and CZK are likely to be the leading Eastern European currencies in the next few months. In third place comes Poland whose […]

Henan Province, China   As we all know, China has suffered devastating floods which has been worst in Henan Province which is home to major businesses and is a key transport hub. Those floods have disrupted roads and railways which has impacted delivery of raw materials and goods. Now it is clear that those floods […]

Copy and Paste?   The Bank of England’s latest policy decision is due this Thursday afternoon. This will be an opportunity for the central bank to set forth its latest assessment of the economy and announce/forebode any required changes to the monetary backdrop of the UK economy. Economic data has, on the whole, largely continued […]