News & Opinion
Global Price Deflation
Global Price Deflation

Almost every major asset class has peaked from a very high level and the descent will be protracted. The Fed is letting $50 billion a month run off their balance sheet. The ECBs QE program was carrying purchases of 30 bln euros a month through September, until October and November when purchases were reduced to 15 bln euros a month, purchases are supposed to go to zero in December. The Japanese Central Bank is shrinking their balance sheet simultaneously with the ECB and the Fed. The question is, how much will central banks shrink liquidity whilst assets fall?

VIX – watch the term structure
VIX – watch the term structure

At the tail end of a particularly dismal month for global markets on October 26th the VIX broke 26 on the upside, a level not seen since last February. Since the start of November market volatility has begun to subside as equities rebound, but going forward investors should continue to focus on not only the VIX but also its term structure to gauge fear.

China: What's Next?
China: What's Next?

The Chinese Communist Party Politburo members recently released a statement via its state controlled news agency Xinhua, intended to placate tumultuous markets and turn around dejected sentiment. The Chinese financial markets are among the worst performing in the world this year, and it could worse.

Uranium – market reactions
Uranium – market reactions

Uranium prices were crushed by about 35% over the past three years, but more recently prices have been making a comeback. Market forces have punished uranium investors leaving many disillusioned with the industry’s prospects. However, a recent shift in supply and demand fundamentals, as well as a change in perception, have driven uranium prices to two year highs. If the inflection point has passed a long-term uptrend may be underway.

Gold – before the rush
Gold – before the rush

Speculators waging short bets in the gold market may get caught offside very soon. The CFTC Commitment of Traders numbers show that speculators have loaded up on short gold contracts in unprecedented quantities. Oddly enough, as trader’s short interest has skyrocketed the price of gold has been firming, this positioning setup could lead to a major short squeeze. Usually, when short interest rises the price of an asset is pushed down, but recently gold has not been falling and this could be a contrarian indicator.

News & Opinion Home


Categories


Unless otherwise stated all material published on this News & Opinion page should be construed as market commentary, observing market, economic and/or political conditions and not intended to refer to or promote any specific trading strategy. Information contained was obtained from reliable sources but Valbury Capital Ltd. does not guarantee its accuracy. Valbury Capital Ltd. is not responsible for any trading decisions taken by you or any other persons viewing this material. All trading involves risk. Losses can exceed deposits.

Share


Follow


Contact Us

Open Monday to Friday from 8:00am to 8:00pm CET/CEST.

Valbury Capital Limited is registered in England and Wales with registration number 07393159. Registered office: 5 Market Yard Mews, 194-204 Bermondsey Street, London, SE1 3TQ. Principal place of business: 11th Floor, 30 Crown Place, London, EC2A 4EB.

Valbury Capital Limited is authorised and regulated in the provision of financial services by the Financial Conduct Authority (FCA), and, authorised by the FCA under the Payment Services Regulations 2009 for the provision of payment services, FRN 540418. Member of the London Stock Exchange. Member of the Futures and Options Association.

© 2019 Valbury Capital Limited. All rights reserved.

Share

We use cookies to improve your experience of this website. By continuing to browse this site you are agreeing to receive our cookies. For more information, read our Privacy Policy.

I Agree

Our Investment products and services are not suitable for everyone. It is possible to lose all or part of your investment.

Trading on margin carries a higher level of risk and it is possible to be required to deposit additional funds. You should not invest money that you cannot afford to lose. Please click here for our detailed risk warning.

CFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs and FX with this provider. You should consider whether you understand how these products work and whether you can afford to take the high risk of losing your money. Key information documents: CFD, Rolling Spot FX.

READ LESS