Something For The Weekend?

Weekend Briefing- 10/07/2020

Good Morning All,

Happy Friday!

  • Sterling ended up virtually unchanged yesterday, having traded up as high as $1.2670 at one point during the morning. This was caused by the market warming to Chancellor Sunak’s package of stimulus measures and encouraging sounds coming from the Brexit talks.
  • US jobless claims were better than expected, but the US equity markets turned tail in the afternoon due to increasing Covid-19 concerns. As they did, sterling gave back some of its gains, ending the day unchanged against both the dollar and the euro.
  • Both sterling and the euro are trading at or around their 200 day moving averages which if they break on the upside will be key buying signals for technical traders.
  • Away from sterling, Croatia and Bulgaria are set to get approval to enter ERM-2, a preliminary step toward joining the euro. They would be the first new members since 2015 and a decision is expected over the weekend.
  • The pound has enjoyed its best week for nearly a month, but overnight is lower as the markets adopt a more risk-averse tone. Today is a very quiet day on the data front and unless we get some positive news from the Brexit talks, sterling may well continue edging back down as traders look to book profits ahead of the weekend.

Support and resistance levels

GBP/USD Support 1.2512 Resistance 1.2651
EUR/USD Support 1.1222 Resistance 1.1402
GBP/EUR Support 1.1086 Resistance 1.1265

On This Day…

On this day in 1856 Nikola Tesla, the Serbian-American inventor was born. Considered by many as America’s greatest electrical engineer, he is credited with coming up with the idea for radio, and after whom the tesla (a unit of magnetic flux density) is named. His work fell into relative obscurity following his death in 1943, however, during the 1990s there was a resurgence in popular interest in Tesla.

We hope you had a good week and will have an even better weekend!

 

Australian market set to open lower

Anyone who wants to invest in Chinese property must be ready to move there. According to regulations, individual foreign buyers need to demonstrate that they have worked in China for at least a year and are buying the residence for self use,” says Anthony Couse, managing director in the Shanghai office of global real estate consultancy Jones Lang LaSalle.

The capitalist elements of its economy make it easy to forget that China is a communist country. Although property ownership is common, in China “ownership” means one has obtained the right to use the land, not own it. “All land is owned by the government,” says Regina Yang, head of research and consultancy in the Shanghai office of global real estate consultancy Knight Frank. Land for residential use is typically leased to property owners for a period of 70 years, Yang says. “After that, whether or not ownership will revert back to the government is uncertain.”

Bigger Cities May Be Safer Foreign Investments

If an individual does find the right opportunity to purchase an overseas investment property, he or she can employ strategies to mitigate the risk of currency fluctuations when making a down payment or ongoing mortgage payments. For example, people who want to own a home abroad can set up a bid through an online foreign exchange service, which enables a buyer.

An important point for those looking for overseas investment properties: Anyone who wants to invest in Chinese property must be ready to move there. According to regulations, individual foreign buyers need to demonstrate that they have worked in China for at least a year and are buying the residence for self use,” says Anthony Couse, managing director in the Shanghai office of global real estate consultancy Jones Lang LaSalle.

The capitalist elements of its economy make it easy to forget that China is a communist country. Although property ownership is common, in China “ownership” means one has obtained the right to use the land, not own it. “All land is owned by the government,” says Regina Yang, head of research and consultancy in the Shanghai office of global real estate consultancy Knight Frank. Land for residential use is typically leased to property owners for a period of 70 years, Yang says. “After that, whether or not ownership will revert back to the government is uncertain.”

The Chinese government ranks cities into “tiers” based on their population size and gross domestic product (GDP). According to Yang, Tier-1 cities (e.g., Beijing, Shanghai, Guangzhou and Shenzen) and Tier-2 cities (e.g., Chengdu, Chongqinq, Hangzhou, Suzhou and Nanjing) are the best international real estate investments because they have.