Message from Coach
On this week’s market summary:
📍1. PayPal will soon begin offering support for cryptocurrencies, including at the checkout, as the Silicon Valley payments company looks to capitalise on a resurgence of interest among consumers, traders and central bankers in the likes of bitcoin and Ethereum. The New York State Department of Financial Services said on Wednesday it had granted PayPal a conditional “Bitlicense”, permitting it to trade and hold cryptocurrencies. In the coming weeks, PayPal plans to offer its US-based customers the ability to buy, sell and hold bitcoin, ethereum, bitcoin cash and litecoin.
📍2. Consumer prices rose 0.5 per cent on an annual basis last month, up from 0.2 per cent in August, according to figures from the Office for National Statistics released on Wednesday. The rise was driven by prices for leisure and cultural activities, and the end of the government’s Eat Out to Help Out scheme, which financed discounted restaurant and café meals in August, that pushed prices in catering services up by 4.1 per cent. The still low rate of inflation will mean state pensions will rise by 2.5 per cent in April to £137.61 under the government’s triple lock, which guarantees a rise of the highest of inflation in September, average earnings or 2.5 per cent.
📍3. Sterling gained steadily through Wednesday, helped by EU chief negotiator Michel Barnier’s comments that a trade deal between the UK and the bloc was “within reach” if both sides were prepared to compromise. A statement from the UK indicating Number 10 was prepared to begin “intensive talks” added more fuel to the rally. The signs of potential progress mark a turnround from late last week, when prime minister Boris Johnson warned that the UK was prepared to walk away without a deal unless the EU showed a “fundamental change of approach”.
📍4. European equities fell to their lowest in almost a month as jitters spread about next month’s US presidential election. The regional benchmark Stoxx 600 share index dropped 0.7 per cent in early trading on Thursday, taking it back a level last seen in late September. Frankfurt’s Xetra Dax was down almost 1 per cent and London’s FTSE 100 slipped 0.4 per cent. The sell-off came ahead of the final debate between US president Donald Trump and his Democratic challenger Joe Biden, who is leading the polls. Mr Trump suggested in their last debate that he may dispute the result of the election if he does not win.
One of the must-ask interview questions for banking and finance is: “Have you read any news recently?”, with the follow-up questions: “How would you link this news to the market and what investment suggestions would you give to your clients based on this news?”
Showing your market sense and ability to provide feasible investment ideas would help to differentiate you from other candidates. Therefore, apart from the weekly news update / investment insights, we have also generated this Weekly Market Summary for you to have a quick understanding of the market development and tips to answer some hot discussion topics.
Take a look of the summary and WhatsApp us in the group if you have questions.