Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News
China stocks end mixed despite PBoC announcement
News
Asia stocks rise on prospects of Fed easing hikes
News
HP joins the tech layoff spree
News
Best Buy shares spike amid upbeat Q3 print
News
Investors cheer Disney CEO Bob Iger’s return
News
Foot Locker shares surge after upbeat earnings report
Trends & Analysis
News
China stocks end mixed despite PBoC announcement
News
Asia stocks rise on prospects of Fed easing hikes
News
HP joins the tech layoff spree
News
Best Buy shares spike amid upbeat Q3 print
News
Investors cheer Disney CEO Bob Iger’s return
News
Foot Locker shares surge after upbeat earnings report

CFDs & spread bets are complex instruments & come with a high risk of losing money rapidly due to leverage. 73% of Retail investor accounts lose money when trading CFDs & spread bets with this provider. You should consider whether you understand how CFDs work & whether you can afford to take the high risk of losing your money.


Account
New to ADSS? Open an
account now to get started.
Open an account Login

News

Musk revives $44 billion offer for Twitter

 

Thursday, October 06, 2022, 8.45am GMT

The news shaping the markets today

Six Iranian-made drones hit a building in a town near Ukraine’s capital Kyiv. The ongoing war sent the WTI crude oil prices higher this morning.


Hong Kong’s S&P Global PMI fell to 48.0 in September, from 51.2 in the previous month. Although this was the first decline in private sector activity since March, the HKD/USD forex pair remained almost flat.


Australia’s trade surplus shrank to a six-month low of A$8.32 billion in August, from A$8.97 billion in the prior month. However, the AUD/USD pair rose in forex trading this morning.


Philippines’ unemployment rate fell sharply to 5.3% in August, from 8.1% in the year-ago month, lending support to the PHP/USD forex pair.


South Korea’s foreign exchange reserves contracted to $416.77 billion in September, from $436.43 billion in the previous month. Despite this, the KRW/USD pair rose in forex trading this morning.

 

What’s happening: Elon Musk renewed his deal to buy Twitter in a deal valued at $44 billion.

What happened: Musk reversed course to send a letter to the social media platform’s litigation staff, stating his intention to proceed with the acquisition.

However, the legal battle between Musk and Twitter is expected to continue.

Why it matters: Twitter had filed a lawsuit after Musk backed out of the agreement in July, citing concerns over the number of fake accounts on the social media platform. Musk had sold more than $15 billion worth of shares in Tesla earlier in the year to fund the buyout transaction. The case had been scheduled to go on trial on October 17.

Elon Musk and his team of advisors have now sent a letter to Twitter stating the intention to proceed with the acquisition of Twitter at $54.20 per share. There are speculations of Musk needing to sell another $2 billion worth of Tesla shares to fund the deal.

Shares of Twitter were halted in the afternoon trading session on Tuesday, after Bloomberg reported about the letter. Shares of the social media platform jumped more than 22% in late trading session on Tuesday, following the resumption of trading after a 13D filing by Musk confirmed the report.

The revival of Elon Musk’s buyout deal for Twitter resulted in several analysts raising the price target for the social media company. Rosenblatt Securities raised the price target from $37 to $54.20, reflecting the buyout price.

How shares responded: Twitter’s shares surged over 22% to close Tuesday’s session but fell 1.4% to close at $51.30 on Wednesday. The stock has gained just 1% over the past six months.

What to watch: Investors will keep an eye on the ongoing negotiations between both the parties. Markets expect the litigation to end soon and for the deal to get the necessary approvals.

The markets today

The Canadian dollar will be in focus today ahead of Ivey PMI data

Context: The Canadian dollar declined against the US dollar on Wednesday following the release of economic data.

Details: Domestic data released on Wednesday showed a decline in exports during August, which exerted pressure on the Canadian dollar despite higher crude oil prices.

Canada’s trade surplus shrank to C$1.5 billion ($1.1 billion) in August and came in much below market expectations of a surplus of C$3.45 billion and the C$2.37 billion surplus recorded in July. Exports shrank 2.9% during the month, also falling 1.3% on a volume basis, while prices also declined for the third month in a row.

The US dollar index, which measures the greenback’s performance versus a basket of major peers, surged on Wednesday, after data from the US showed private employers increasing hiring in September.

“It appears to be a wave of broad U.S. dollar buying. Notably the rebound in oil prices and equities is providing only minimal support to the Canadian dollar here against a resilient greenback,” Wells Fargo analyst Erik Nelson said in a note to clients.

The rise in prices of crude oil, one of Canada’s major exports, limited the overall decline for the Loonie. WTI crude oil prices gained 1.4% to $87.76 per barrel on Wednesday.

The CAD/USD forex pair fell around 0.7% to $1.3621 on Wednesday, after the Loonie retreated from its highest intraday level in eleven days during the prior session.

What to watch: Traders await the release of data on Canada’s Ivey Purchasing Managers Index today. The Ivey Purchasing Managers Index, which rose to 60.9 in August, is expected to decline to 55 in September. Markets will also keep an eye on the movement in crude oil prices.

Other Markets: European trading indices closed lower on Wednesday, with the FTSE 100, DAX 40, CAC 40 and STOXX Europe 600 down by 0.48%, 1.21%, 0.90% and 1.02%, respectively.

Support & resistances for today

Technical Levels News Sentiment
USD/JPY  – 144.64 and 144.69 Positive
USD/CHF – 0.9810 and 0.9821 Positive
Gold – 1728.01 and 1731.01 Positive
Copper  – 3.5653 and 3.5840 Negative
FTSEE 100 – 7035.41 and 7064.23 Positive

Market snapshot

Futures at 0400 (GMT)
EUR/USD (0.9916, 0.31%) Dow ($30,438, 0.42%) Brent ($93.59, 0.2%)
GBP/USD (1.1360, 0.29%) S&P500 ($3,812, 0.46%) WTI ($87.97, 0.2%)
USD/JPY (144.61, -0.05%) Nasdaq ($11,692, 0.59%) Gold ($1,731, 0.6%)

What else to watch today

Germany’s factory orders, new car registrations and construction PMI, Spain’s industrial production, Eurozone’s construction PMI and retail sales, France’s construction PMI, new car registrations and retail sales, Italy’s construction PMI and car registrations, UK’s construction PMI, Mexico’s auto exports, car production and gross fixed investment, India’s money supply M3, Turkey’s gross foreign exchange reserves, US Challenger job cuts, initial jobless claims, continuing jobless claims and natural gas stocks change, Brazil’s Car production and new vehicle registrations, as well as Argentina’s industrial production.

ADS Securities London Limited “ADSS” is an execution-only service provider. This material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or investment objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by ADSS that any particular investment, security, transaction or investment strategy is suitable for any specific person. To the extent that any content in this material is construed as investment research, you must note and accept that the content was not prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.  This material may contain links to third party websites, and any content, or use of your personal data by any third party websites is not the responsibility of ADSS or any member of the ADSS Group.


Site by Pink Green
© ADSS 2022


CFDs and Spreadbets are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of Retail investor accounts lose money when trading CFDs and Spread Bets with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

ADSS is a trading name of ADS Securities London Limited, a company registered in England and Wales with company number 07785265 (VAT Registration Number: 212722447). Registered address 9th Floor, 125 Old Broad Street, London, EC2N 1AR. ADS Securities London Limited is authorised and regulated in the UK by the Financial Conduct Authority (FRN 577453).

The information on this site is not directed at residents of the United States, Canada, EU or any particular country outside the UK, and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law.

All opinions, news, analysis, prices or other information contained on this website are provided as general market commentary and does not constitute investment advice, nor a solicitation or recommendation for you to buy or sell any over-the-counter product or other financial instrument. Please ensure you understand all risks and seek independent advice if necessary.