Volatility Report: 25 April
Gains in oil and Nasdaq this week have been matched by falls in lean hogs and live cattle.
The Risers
Brent
The rally in oil prices goes on, with Brent touching a new high for the year. The US has toughened its stance on Iran, announcing the end of sanctions waivers that allowed some countries to buy Iranian oil. Iranian output is expected to drop, but it is not yet clear whether OPEC will make up the difference. As a result, the steady 2019 rally in oil goes on, and pullbacks still look like possible buying opportunities.
Nasdaq
US earnings season is in full flow, and the evidence so far suggests that declines in corporate income have not been as bad as feared. As a result, tech stocks have rallied hard, and the Nasdaq has now surpassed the record high of 7687 seen in 2018. Further gains seem likely here, even if the summer months may see a short-term pullback.
The Fallers
Lean hogs
The African swine flu epidemic continues to sweep China, but for the time being the price of lean hogs has reversed. Having seen such a sharp rally it is not surprising that the price has dropped back, but if the price holds above 8500 then the overall break higher seems intact.
Live cattle
The sell-off is gathering pace for live cattle, with some liquidation of longs being amplified by the drop in hog prices. The rally from the lows of last summer has reversed, though the 11,450 level will be one to watch for possible support. A move back above 12,400 is needed to provide a more bullish view.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
