SGM-FX insights

Markets Maelstrom   News early on in the day yesterday that Central Banks were ready to inject a stimulus by way of more liquidity and to create still easier monetary conditions to combat the economic effects of Coronavirus cheered stock and oil markets further. Then statements from the G7 in the morning and the pre-emptive […]

Loose footing   Equity markets have been a good barometer of the risk associated with the Coronavirus. Thanks to numerous developed markets and indices being ‘late-cycle’ they are proving to be particularly sensitive to exogenous risk; more valuable in my opinion than many purpose-built indices. In the UK yesterday, the FTSE100 kicked off to a […]

Markets: Enough already?   Last week the FTSE fell 823 points or 11.1% in line with other global stock markets which collectively saw $6 Trillion wiped off stocks. Oil is now just $50.60. Here in the UK c8000 people have been tested for Coronavirus and all but about 35 have tested negative. Globally the mortality […]

UK House Sellers   For those readers who remember the 1980’s, you will recall that the most loathed symbol of Young Urban Professionals or Yuppies was the estate agent who zipped around in a flash (red) company motor with a mobile phone the size of a brick clamped to his ear. With the advent of […]

Cool, but how?   If you want the simplest of summaries to yesterday’s budget speech in South Africa then read no further than the title. Tito Mboweni mostly said the right things as he laid the budget before the nation yesterday. The one thing he missed out was how!? What the review promised was more parsimonious […]

Shrove Tuesday yesterday which means today is Ash Wednesday and the start of Lent   For the next 40 days until Easter Sunday, many will be observing some form of abstinence regime out of either religious or another conviction. Some SGM-FX team members are vying with each other to give up something: Charles(smoking) Euan(alcohol) and […]

Decoupling   Over the weekend (apparently), we learnt who the king and queen of Winter love island ‘19/‘20 would be. I can only tell you their names by googling it. So I won’t pretend to be a fountain of knowledge on the subject and allow you to make your own searches. One thing I can […]

The Furious One   Hats off to Tyson Fury for his epic victory on Saturday night. Quite a record this 206cm 115 kilo fighter has: 31 fights, 30 wins, 21 KOs. Sgm-FX’s (almost as) tall body builder and keep fit enthusiast Euan was up into the small hours cheering him on!     Blue Is […]

Airlines   Unsurprisingly Qantas and Air France-KLM both issued announcements of their profitability taking a pounding (no pun) yesterday. Airline management would, in their own minds at least, be considered derelict in their duties, if they did not take the opportunity to blame a lack of profitability on Coronavirus. However, it is worth injecting some […]

Cushty   There have been times since he took over the FED presidency from Janet Yellen that Jay Powell’s job looked unenviable. October last year, for example, when the chairman had to calm a liquidity drought using severe repo operations, must’ve been a particularly stressful time for Mr Powell. The minutes released from the FOMC’s […]

Prada   Fashionistas keenly anticipating the Prada Resort Japan fashion show on 21 May are set for disappointment. While Japan remains a key market for Prada the Milan based company has postponed the show due to the Coronavirus outbreak. Watch out for news of concerns regarding the potential impact on the mega Japan event for […]

Continental chaos   This morning I bring you a story from Europe that should show you just how vulnerable the financial world has become and therefore just how unstable it could prove to be during in the coming year. It comes in the form of fixed income products in Europe that, let’s not forget, have […]