|Bid||34.17 x 7100|
|Ask||34.18 x 77500|
|Day's Range||34.15 - 34.37|
|52 Week Range||32.12 - 38.05|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.49%|
Is a Perfect Storm Brewing for the Week Ahead? The British pound (FXB) appreciated 0.66% against the US dollar (UUP) for the week ending March 16. British equity markets (BWX) were impacted by increased concerns about global trade wars and closed lower last week.
The British pound (FXB) appreciated 0.32% against the US dollar (UUP) in the week ended March 9, 2018. The economic data released from the United Kingdom in the week indicated that the UK economy has been accelerating. Uncertainty surrounding Brexit negotiations has dampened the demand for the British pound, especially as we approach the next key Brexit date of March 22, 2018, when the spotlight will move to Brussels, where EU (European Union) leaders will meet to sign a transition Brexit deal.
Glencore’s (GLEN-L) financial position has improved greatly since 2015, when concerns over near-term debt maturities—coupled with falling commodity prices—triggered a massive sell-off in the stock. Now, not only has the company restored its dividend program, but it’s also looking at inorganic growth. Along with the 2017 annual results, Glencore said the company would like to keep its net debt between $10 billion and $16 billion and would cap its net debt to EBITDA (earnings before interest, tax, depreciation, and amortization) to 2x.
Economic data releases were in line with expectations with average earnings increasing and jobless claims falling. Multiple Bank of England speakers sounded confident about the UK economy, leaving no reason for the British pound to lose value last week. British equity markets (BWX) were one of the few global indexes to post losses last week.
Among other factors, expectations of supply-side disruptions at leading copper mines boosted copper market sentiment. To be sure, several labor contracts at leading copper mines—including BHP Billiton’s (BHP) Escondida—are coming up for negotiation this year. Last year, we saw labor action at several mines, including Escondida and Freeport-McMoRan’s (FCX) Grasberg, which are the world’s largest copper mines (ANTO).
Is Volatility Set to Drop Further after Stock Market Rebound? The British pound (FXB) appreciated 1.5% against the US dollar (UUP) for the week ending February 16. Economic data reported from the UK in the previous week indicated that inflation remained higher at 3% in January and retail sales growth dropped to 0.1% as compared to the market expectation of 0.5%.
The British pound (FXB) depreciated by 2.0% against the US dollar (UUP) in the week ended February 9. This fall comes as a surprise because the Bank of England, in its monetary policy statement and quarterly inflation report, sounded hawkish about the economy. The reason for the tepid performance of the British pound was weaker-than-expected economic data indicating lower industrial production and trade activity, and risk-off trading boosting demand for the US dollar.