As the US presidential election approaches in early November, market volatility is expected to rise, particularly impacting Wall Street. Historically, there is a strong inverse correlation between the S&P 500 and the VIX, suggesting that as volatility increases, stock prices tend to fall. Traders can leverage this by taking short positions on the VIX while going long on the S&P, especially during the heightened volatility period surrounding the election.
IG
05:36 15.10.2024
A proposed tax increase on tobacco products in Italy could raise cigarette prices to €5, generating up to €13.8 billion for the national health care system. Supported by health organizations and Senate Vice President Domenica Castellone, the initiative aims to combat smoking-related health issues, particularly lung cancer, which accounts for 90% of diagnoses in the country. The plan may involve a public referendum to gauge citizen support before being discussed in the Senate.
European equities are rallying as traders anticipate a European Central Bank (ECB) interest rate cut, with the DAX reaching a record high. The FTSE 100 is also recovering, with future gains hinging on upcoming UK employment and inflation data. A 25 basis points cut is expected at the ECB's meeting on October 17, with further cuts anticipated in December.
IG
04:57 15.10.2024
Asian indices showed positive momentum, with the Nikkei rising 1.65% and the ASX up 0.88%, while the Hang Seng Index faces uncertainty due to unclear Chinese fiscal policies. The Straits Times Index remains resilient, supported by strong dividend yields and potential increases in quality listings, aiming for a retest of its September high.
IG
04:43 15.10.2024
The World Health Organization secured $1 billion in pledges at a fundraising event in Berlin, marking a significant step towards sustainable financing to address global health emergencies. This funding aims to support WHO's $11.1 billion strategy for 2025-28, which could save over 40 million lives. Key European nations, including Germany and the EU, have committed substantial amounts, while further appeals for funding are planned across Asia, the Middle East, and the Americas.
Liechtenstein plans to tighten banking regulations and relinquish its "tax haven" status, making it more difficult for wealthy foreigners to conceal assets in its banks. Prince Alois is set to announce increased transparency measures, following pressure from international authorities. The changes will not affect previously hidden assets, as an interim period will allow customers to transfer their funds before the new laws take effect.
04:16 15.10.2024
Manz AG's share price has risen by 10.34% over the past month, currently trading at EUR 6.82, despite ongoing financial challenges. The company's price-to-sales ratio of 0.23 suggests potential undervaluation, while a negative price-to-earnings ratio of -24.38 highlights earnings difficulties. Investors are urged to consider their options as new analysis indicates an urgent need for action.
Rivian has lowered its 2024 production forecast from 57,000 to 47,000-49,000 vehicles due to supply chain issues, impacting market expectations. Despite these challenges, the company remains financially stable and continues to invest in new technologies, with analysts optimistic about its potential in electromobility. Rivian shares are currently trading at around EUR 9.55, and Deutsche Bank has adjusted its price target from USD 14 to USD 13 while maintaining a buy recommendation.
TSB Bank has been fined £10.9 million ($14.2 million) by the Financial Conduct Authority (FCA) for inadequate treatment of retail customers in financial distress. The FCA found that TSB's repayment plans from June 2014 to March 2020 were unrealistic and potentially unaffordable for approximately 232,849 affected customers. Additionally, the bank lacked sufficient controls to ensure fair treatment for those facing financial hardship.
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