Learn To Trade
 
Indicators & Chart Patterns

Deepen your knowledge of technical analysis indicators and hone your skills as a trader.

Find your detailed guides here
Trading Glossary

From beginners to experts, all traders need to know a wide range of technical terms. Let us be your guide.

Learn More
Knowledge Base

No matter your experience level, download our free trading guides and develop your skills.

Learn More
Learn To Trade

Trade smarter: boost your skills with our training resources.

Create a live account
Market Analysis
 
Market News

All the latest market news, with regular insights and analysis from our in-house experts

Learn More
Economic Calendar

Make sure you are ahead of every market move with our constantly updated economic calendar.

Learn More
Technical Analysis

Harness past market data to forecast price direction and anticipate market moves.

Learn More
Live Webinars

Boost your knowledge with our live, interactive webinars delivered by industry experts.

Register now
Market Analysis

Harness the market intelligence you need to build your trading strategies.

Create a live account
Partnership
 
Affiliate Programme

Grow your business and get rewarded. Find out more about our Affiliate Programme today.

Learn More
Money Manager

Increase your income and get compensated for your trading knowledge with ThinkInvest, putting you in control.

Learn More
API Trading

Create your own trading platform or data tools with our cutting-edge APIs.

Learn More
Introducing Broker

ThinkMarkets ensures high levels of client satisfaction with high client retention and conversion rates.

Learn More
White Label

We supply everything you need to create your own brand in the Forex industry.

Learn More
Regional Representatives

Partner with ThinkMarkets today to access full consulting services, promotional materials and your own budgets.

Learn More
Partnership

Plug into the next-gen platforms and the trades your clients want.

Create a live account
About ThinkMarkets
 
About Us

Find out more about ThinkMarkets, an established, multi-award winning global broker you can trust.

Learn More
Security of Funds

Security of your funds is our number one priority. Find out more about our insurance policy with Lloyd's of London.

Learn More
Trading Infrastructure

When it comes to the speed we execute your trades, no expense is spared. Find out more.

Learn More
ThinkMarkets News

Keep up to date with our latest company news and announcements.

Learn More
Contact Us

Our multilingual support team is here for you 24/7.

Learn More
About ThinkMarkets

Global presence, local expertise - find out what sets us apart.

Create a live account
search
Create account

Stocks on the backfoot with PMI data, earnings and yields in focus

Fawad Razaqzada Fawad Razaqzada 19/02/2021
Stocks on the backfoot with PMI data, earnings and yields in focus Stocks on the backfoot with PMI data, earnings and yields in focus
Stocks on the backfoot with PMI data, earnings and yields in focus Fawad Razaqzada
The investor focus will be on the European markets this morning ahead of the release of the flash PMI data for the month of February and more company earnings results. Global equities have eased back from their recent highs this week and unless they stage a rally later today, most indices remain on track for the first weekly loss this month.  The investor focus remains fixated on bond yields which continue to rise due to growing expectations that inflation will be returning as the global economic recovery is expected to speed up once lockdowns end, and things start to go back towards normal. Investors expect pent-up demand from households and businesses to replace government spending and central bank stimulus. As a result, they have been selling government bonds, causing their yields to rise. If yields push onwards and upwards from here, then this could put some further pressure on the stock markets. So far, gold has been the market most affected as rising yields increase the opportunity cost of holding onto gold, an asset which pays no dividend or interest, and costs money to store.

Today’s upcoming data releases could impact yields. Stronger-than-expected numbers are likely to boost investor confidence further in a faster economic recovery from the COVID-19 pandemic. So, yields might rise further, which may keep the potential gains in check for stocks. In other words, there is a chance that good news might mean not so good news for stocks going forward as investors price out the prospects of further stimulus.  That being said, it is far too early to say for sure if this will be the new trend, for currently investors seem happy to be buying every dip.

European PMIs today’s key highlight

The European services PMIs should remain in contraction territory, below 50.0, due to the current lockdowns, but it will still be interesting to see how business activity has been affected. The manufacturing PMI data will be more important, and analysts expect conditions in the sector to have remained fairly similar to the previous month, and in expansion mode.  Any shocking results could undermine equity prices after the major indices retreated from their recent record or multi-year highs this week amid profit-taking and valuation concerns.  

Eurozone PMIs will be published at 09:00 GMT, although we will hear from France and Germany earlier. UK PMI numbers will come in at 09:30 GMT.

UK retail sales slump

Earlier, UK retail sales came in well below expectations with a print of -8.2% month-over-month in January versus -0.3% expected. The drop in sales were obviously worse than anticipated but this should have come as no major surprise given that the UK has been in a nationwide lockdown. Indeed, the pound held near its recent highs as investors continue to ignore short-term risks and look forward to the months ahead when the recovery is expected to speed up.

Earnings in focus

On the earnings front, earnings are expected from companies such as French food and beverage giant Danone, car maker Renault and luxury brand Hermes. We will also hear from Italian oil company Eni. From the UK, earnings from NatWest will be the main highlight.
 
FTSE testing key support area

Retail stocks will be in focus after those disappointing retail sales numbers, but with yields on the rise banks should start to outperform while the recent big gains for crude and copper prices should keep oil majors and commodity stocks in demand. The FTSE was also testing THIS key support area ahead of European PMI data, meaning there was a chance it could rebound again:

FTSE
 
However, if the above support area fails to hold and the index goes on to break that bullish trend line, then we could see a deeper correction in the days ahead.
Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.

Learn more to earn more

our Education center

Related articles:

Gold rebounds amid soft dollar as yields ease...

By Fawad Razaqzada

22/02/2021

GBP/USD holds 1.40 as UK prepares for lockdow...

By Fawad Razaqzada

22/02/2021

GBP/USD likely to break 1.40 handle despite r...

By Fawad Razaqzada

18/02/2021

Bitcoin hitting fresh records above $50K

By Fawad Razaqzada

17/02/2021

Bitcoin soars to $50K, but what about gold?

By Fawad Razaqzada

16/02/2021

Meet our contributors
Mohammed Zidan
×
Mohamed Zidan
Chief Market Strategist, Dubai

Mohamed Zidan is a chief market strategist in Dubai and CFA Level III candidate. He reports to London office and has more than eight years of experience focusing on Forex, Commodities, Indices and global economic developments as well as central bank policies and intermarket analysis. worked as FX Analyst, and Strategist in several different organizations and for various departments. He holds a bachelor’s degree from Cairo University in Egypt. Mohamed Zidan is a regular guest on several major TV networks such as; CNBC Arabia, Fran24 Arabic, Alarabiya , Dubai TV, Sama Dubai, Skynews Arabia, Saudi National News, and Egypt National news.

Zidan presents insight to the markets movements, holds open discussions and relays possibilities related to the world’s financial market and economies.

Mohamed Zidan has been invited as a guest speaker for several international seminars. Zidan provides daily and weekly outlook for the markets. His experience ranges from currencies, commodities, stocks and options. he applies a top-down, global macro approach combined with price action to generate trade ideas and anticipate the next move.

Victor Golovtchenko
×
Victor Golovtchenko
Global Macro Analyst, Sofia

Victor Golovtchenko has been analysing and trading foreign exchange markets since 2004, and is actively involved in the online media space since 2014. His tenure as a Senior Editor at a major brokerage industry news outlet was followed with a breakthrough into the financial news space with the brand new TradeStar website.

As an affectionate macro-focused analyst, he has an integrated framework to look at financial markets as a whole, identifying gaps between currencies, stocks, bonds, and other asset classes to get a core complete picture of the macroeconomic environment.

Fawad Razaqzada
×
Fawad Razaqzada
Market Analyst, London

Fawad is an experienced analyst and economist having been involved in the financial markets since 2010, producing market commentary and research for a number of global FX, CFD and Spread Betting brokerage firms. He leverages years of market knowledge to provide retail and professional traders worldwide with succinct fundamental & technical analysis. Fawad also offers trading education to help shorten the learning curves of developing traders.
 
His colleagues consider him an expert at reading price action on the charts. This together with his deep understanding of economics and fundamental analysis, and trading experience, puts him in a great position to forecast short term price movements. Fawad covers a wide range of markets, including FX, commodities, stock indices and cryptocurrencies and his comments are regularly quoted by the leading financial publications such as Reuters and Market Watch. In addition to ThinkMarkets, Fawad also provides analysis and premium trade signals on his own website at TradingCandles.com.
 
 

Carl Capolingua
×
Carl Capolingua
Market Analyst, Melbourne

Carl has over 20 years' experience in financial markets and has held senior analyst roles at a number of financial institutions. Specialising in Australian and US stock markets in particular, Carl uses a top-down approach to assess the global macro picture before using both technical and fundamental techniques to select stocks. He regularly appears as an expert commentator on a number of media outlets throughout the Asia-Pacific region.
 
 
 

Mohammed Zidan
Mohamed Zidan
He has more than eight years of experience focusing on Forex, Commodities, Indices and global economic developments as well as central bank policies and intermarket analysis.
Victor Golovtchenko
Victor Golovtchenko
Victor Golovtchenko has been trading on the foreign exchange markets since 2004, and is actively involved in the online media space since 2014. His tenure as a Senior Editor follows his role with TradeStar.
Fawad Razaqzada
Fawad Razaqzada
Fawad is an experienced analyst and economist having been involved in the financial markets since 2010, producing market commentary and research for a number of global FX, CFD and Spread Betting brokerage firms.
Carl Capolingua
Carl Capolingua
Carl has over 20 years' experience in financial markets and has held senior analyst roles at a number of financial institutions.

Feel confident?

Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
Back to top