Chesapeake Facebook Coronavirus & EUR/GBP – With Jasper Lawler, Head of Research

 
Chesapeake Facebook Coronavirus & EUR/GBP

08:25am BST | June 29th 2020

European shares open lower, Wall Street points flat
Chesapeake Energy files Chapter 11 Bankruptcy
Top companies boycott Facebook advertising
EUR/GBP Reaches 3-month peak

Inspiration“There is no harm in being sometimes wrong, especially if one is promptly found out.” – John Maynard Keynes

Markets

It was a downbeat start to the week with shares in Asia falling after the late drop on Wall Street Friday. European shares are headed lower in early trading and Wall Street futures are sluggish.  
The dollar was in demand as a haven last week but the euro, pound and other G10 FX are staging a recovery on Monday.  
Gold prices rebounded sharply off $1750 per oz on Friday and sits under $10 short of new 8-year highs.
The price of oil is lower with Brent crude again dropping below $40 per oz.

Coronavirus

News about the rising spread of the coronavirus didn’t get much better over the weekend. A total of 10 million cases worldwide, a new record daily rise in total US cases along with new spikes in Texas and Florida were all bad omens for the trajectory of the pandemic.

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Chesapeake

Top US shale producer Chesapeake energy finally succumbed to years of high debts and crushed oil prices by filing for bankruptcy protection. It has agreed a series of credit lines to keep it operating through the Chapter 11. With debt write offs and a lot more asset sales, the company might come out of the other side, but at a greatly reduced scale. It’s been a strangely good time for bankrupt companies (Hertz) in the last month so who knows.

Facebook Boycotts

Shares of Facebook and other top tech stocks fell heavily in Friday’s sell-off as investors took profits near record highs. Facebook shares will be in focus again on Monday as the company feels the pressure of more top advertisers ‘pausing’ ad spend on the platform in support of the ‘stop hate for profit’ campaign initiated after the killing of George Floyd. The financial impact of a few advertisers, even big ones like Unilever and Coca-Cola pulling spending on Facebook’s $70 billion annual haul will be minimal. Investors will just be mindful of any kind of snowball effect.

Chart: EUR/GBP (4-months)

EUR/GBP has moved to a 3-month high, having held consistently above the 0.90. A new rally to 0.95 would see price back at the March peak

Kind Regards,
Jasper Lawler Head of Research
@jasperlawler

Financial Markets and Political Commentary
 

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About the author

Jasper delivers regular commentary, seminars and webinars on market news, trading analysis, strategy and psychology. He is regularly interviewed by BBC News, Bloomberg, CNBC and Sky News, and has featured in The Times, Guardian and Daily Telegraph. Jasper hosts a weekly charting analysis webinar. He is qualified as a Chartered Market Technician (CMT) with the Market Technician Association, and has a degree in Finance and Economics.