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  1. Cannabis stocks down on below average quarterly reports Shares in Canadian cannabis producers are still falling as they attempt to regain the ground lost following some below average Q3 reports from several major industry players including Canopy Growth (CGC) and Tilray (TLRY). Tilray's shares are losing slightly more than the industry average, but this is largely the work of a price correction in response to the significant jump seen after the company announced its plans to acquire world-leading hemp-based food products company Manitoba Harvest from Compass Group Diversified Holdings. With an estimated value of $318 million (USD), the deal is scheduled to be completed within the next 30 days and would enable Tilray to offer a wider range of products to its customers in the US and Canada. Financial scouts predict that cannabis stocks will continue their decline over the short-to-medium term, but could return to growth further down the line. Over the coming days, we can expect Canopy Growth's unit share price to drop to $45, with Tilray's potentially slipping to $78.5. Meanwhile, Aurora Cannabis (ACB) is likely to slide to $6.5, with shares in Aphria Inc. (APHA) falling to $10. Finally, Cronos (CRON)'s share price looks set to drop to $22.
  2. Quarterly reports fail to boost cannabis stocks As the quarterly reporting season continues on, there is still no unified pattern to cannabis stocks' movements. Following the publication of reports by Canopy Growth (CGC) and Aurora Cannabis (ACB), the market is still waiting to see the Q1 financial results of one more key industry player in Tilray (TLRY). This particular reporting period is especially significant for investors since it represents the first full quarter during which the sale of cannabis was legal across Canada. Several market pundits have forecast Tilray's Q1 per share earnings at $0.14. Canopy's financial statement revealed an overall more positive picture with earnings up 300% to CAD 80 million, though it still didn't quite live up to analysts' expectations. Aurora, on the other hand, posted losses of over CAD 200 million — just one year after reporting profits of around CAD 7.7 million. The company attributed these losses to ineffective management. Financial scouts believe that the marked variation in financial results across the industry's biggest players will mean cannabis shares trade mixed over the short-to-medium term. During this time, we can expect to see shares in Canopy Growth and Aphria Inc. rise to $49-49.5 and $10 respectively, whereas shares in Tilray (TLRY) and Aurora Cannabis are likely to fall to $75 and $6.5 respectively. Meanwhile, Cronos (CRON) could see its share price hit $22. Denis Povtorenko, Libertex Financial Scout
  3. Investors keeping close watch on US-China trade talks and United States' southern border Investors in the Latin American stock markets are awaiting a decisive solution to the US-China trade conflict with bated breath. For the time being, however, they remain cautious and are adopting a position of restrained optimism until the result of the talks becomes clear. High level meetings between the sides are scheduled to take place as early as 21 February and will feature representatives including the Vice Premier of the State Council of the PRC. Meanwhile, world oil prices are holding steady at their local maximums — which are high now that fears of a supply surplus have been assuaged — and this is benefiting the Latin American market. The decision by the OPEC nations to reduce their output volumes coupled with the effect of US sanctions on Iran and Venezuela had a similar calming effect. Elsewhere, financial scouts in Mexico are also carefully monitoring the situation along the US's southern border. Trump had previously demanded that Congress allocate $5.7 billion dollars for the construction of the President's wall. When this was denied, a number of government departments refused to sign off on the budget for over a month, which resulted in a country-wide institutional shutdown. In the end, the US Congress passed a budget which provided for just $1.4 billion in funding for a wall along the US-Mexico border. Trump responded by issuing a national emergency order to combat illegal immigration from Mexico and criminality on the US's southern border. This declaration means that the US President will now be able to access up to $8 billion in funds for his wall. Vadim Kovalenko, Libertex Financial Scout
  4. European markets await new developments on Brexit and US-Chinese trade relations Optimism regarding a resolution to the trade conflict between the US and China could see European stock markets grow. In other news, market insiders have been demonstrating reduced appetite as stocks undergo somewhat of a correction. Investors are choosing to err on the side of caution until they hear the experts' verdict on the current US-China trade talks. The two countries now have just two weeks left in which to reach a decision before the new higher import tariffs come into effect on 1 March. In the meantime, President Donald Trump has already stated publicly that this 1 March deadline for the introduction of new US tariffs on Chinese products could be postponed in the event that a bilateral agreement is close. Such comments are naturally contributing to increased investor optimism across the world. There was some good news for the European markets, too, in the form of rumours claiming Trump is now prepared to sign off on Congress's budget compromise. The budget includes provisions for the construction of an 88-km-long fence along the US's southern border, allocating $1.4 billion to the project as opposed to the $5.7 originally demanded by Trump. Meanwhile, the issue of Brexit remains the main focus of European investors. The United Kingdom's planned departure from the European Union on 29 March is now just six weeks away and, with no final deal in place, investors appear very restless as they react sharply to any Brexit-related news.
  5. Cannabis Stocks’ Prices Grow on the Upbeat U.S. Cannabis Market Outlook Canada’s cannabis growers’ stocks traded in the U.S. market have been marching vigorously up since 2018 Farm Bill had made hemp, and thus CBD oil, legal across all of the U.S. states. This news was followed by Canopy Growth’s (CGC) announcement of its having received a license by the state of New York to grow and process hemp and being set to further spread its roots outside Canada, planning to invest somewhere between $100 million and $150 million into its New York-based operations. Meanwhile, Aurora Cannabis’ CCO said the cannabis grower will unveil a plan to produce hemp-derived CBD for the U.S. market in the next few months. Contrastingly, Tilray has stood out negatively, as it slid down by about 10% after the IPO lockup had expired. But on the positive side, Tilray will become the preferred supplier for CBD products for Authentic Brands, which might bolster up the cannabis sector’s heavyweight’s stock prices. Financial scouts predict that the cannabis sector stocks are set to grow in the days to come, given the bright U.S. cannabis market outlook. Specifically, Canopy Growth and Tilray (TLRY) are likely to trade at $44-$45 and $78-$79, respectively. And Aurora Cannabis’, Aphria’s (APHA) and Сronos Group’s (CRON) stock’s respective prices are expected to range $7-$7.5, $7.5-$8, and $16-$17. Ivan Marchena, Libertex Analyst
  6. Marijuana Stocks Falls into the Correction Territory Major Canadian pot stocks were broadly lower, with some prices currently falling by as much as 5 to 6%. The sector has been into the correction territory after soaring in October on recreational cannabis sales rollout in Canada. Now we see a big share price reversal versus the peak prices. The Sector’s leaders Canopy Growth Corp and Tilray Inc fell by about 50% versus their 12-month highs. And some other key names in the sector like Aurora Cannabis Inc plummeted even lower. On the positive side, some good news appeared that, as financial scouts note, might refuel buying in the sector. Specifically, first-ever medical cannabis growing licenses were awarded to private businesses. And some more countries like the UK and Germany might possible make marijuana legal as well. Another big positive news for the marijuana sector companies was that Canopy Growth and some other major cannabis producers have been on the Bloomberg’s 50 Stocks to Watch in 2019 list. We can expect that given a lengthy correction after the bursting growth in October Canopy Growth (СGС) stocks may be down by $29-30 within the week, while Tilray might drop to $100-105, and Aurora Cannabis Inc, Aphria Inc. and Cronos Group might hit the lows at $4.5-$5, $6.5-$7, and $8.2-$8.5, respectively. Ivan Marchena, Libertex Analyst
  7. Which opportunities does financial scouting bring? When it comes to financial investments, being ahead of the others is a key to success. The drivers influencing the price are constantly changing. This makes it necessary to always monitor both micro and macroeconomics and act fast. As Leo Szilard, a famous scientist, once said, 'In order to succeed it is not necessary to be much cleverer than other people. All you have to do is be one day ahead of them.' This is the best phrase to describe financial scouting, the new service that enables faster trading and gains more profit. Want to know more about financial scouting? - Visit Libertex.com!
  8. In Europe, All Eyes Are On the G20 Summit European traders will keep close track of the G20 summit. They wait for potential important statements to be made regarding the global economic outlook, and for agreements to be reached to address the US-China trade war. On the downside, investors are wary now that the US leader has promised to unleash tariffs on European car imports, so Europe’s carmakers feel downbeat. Meanwhile, on the positive side, traders’ worries about possible fourth rate hike from the U.S. Federal Reserve were somewhat soothed. The Fed’s chairman Jerome H. Powell made a market-invigorating statement saying that the US economic outlook remains strong, but the Fed might consider a pause in its interest rate hikes next year to assess the impact of its credit tightening. Mr. Powell said the benchmark interest rate was “just below” the neutral level. Financial scouts note that the two continuing main concerns for Europe are Brexit divorce conditions and the Italy budget standoff. According to new official figures, withdrawal from the European Union under the government’s plans could cut the UK’s GDP by up to 3.9% over the next 15 years, but leaving without a deal could deliver a 9.3% hit to GDP over the same period, says the analysis produced by departments across Whitehall. Oil will be the focus of interest for the European investors as well, as they hope that the oil prices might be bolstered if OPEC+ members decide to cut the supply to curb the current glut in their meetings from December 5 to December 7. Ivan Marchena, Libertex Analyst
  9. What is financial scouting? When referring to the term financial scouting, people mean the searchin for good trading opportunities in the financial market, done both quickly and professionally. A financial scout or a financial scouting service sets out to find investment opportunities that fully meet a trader's needs, this being their primary task. Such investment opportunities may be both high- and low risk. Want to know what is the difference between financial scouting and investment advisory? - Visit https://libertex.com/blog/what-financial-scouting
  10. Europe’s Markets to Remain under Pressure, As Investors Await the G20 Summit and OPEC+ Meeting Outcomes Europe’s investors’ eyes are on the G20 summit to be held from November 30 to December 1 in Argentina. Investors expect that some new arrangements might be worked out by the US and China that would hopefully help to break the trade impasse. The positive expectations are driven by the US President Donald Trump’s saying earlier that he intends to discuss the situation with the Chinese leader on the sidelines. Another main focus for European traders is Brexit terms that remain a front-burner concern even though key agreements seem to have been reached between Brussels and London. Meanwhile, new setbacks might still occur. Previously, the sticking point had been a rift over Gibraltar, as Spain had contested the disputed territory’s status and threatened to veto the Brexit withdrawal agreement. But eventually the UK and Spain have struck a Brexit deal over Gibraltar. On the positive side, the European indices might be underpinned by the euro weakening versus the US dollar, as investors become less attracted to high-risk assets including high-risk forex investments and now tend to prefer buying robust currencies like US dollar. And on the negative front, oil prices continue to face pressures even though some OPEC members, primarily Saudi Arabia, have been sending out signals that the decision to curb oil production might be taken in the OPEC+ key meetings to be held in Vienna from December 5 to December 7. Ivan Marchena, Libertex Analyst
  11. Europe’s Markets to Remain Volatile as Investors Wait for the Italy Budget Impasse to be Resolved Europe’s stock markets are awaiting the outcome of the Italy budget crisis. Most likely, we’ll have some certainty about what really happens in early December. Investors are somewhat worried about the situation, with market prices going both ways. The Eurogroup is scheduled to meet on December 3 and will most likely discuss the issues faced. Italy’s government are hopeful that there will have a constructive dialogue with European Commission Head Jean-Claude Juncker. Still, investors fear that Italy may be disciplined with EDP measures to be imposed against it. Meanwhile, traders never stopped watching the US-China trade war developments, with a U.S. government report appeared that accuses Beijing of stepping up efforts to steal technology via network hacks. Also, investors are awaiting the outcomes of the upcoming meeting between Presidents Donald Trump and Xi Jinping at G20 Argentina 2018 summit in December. If traders understand that trade risks still remain high after the summit, they might reasonably have reason to doubt that the Federal Reserve will raise rates again as planned in its next meeting. So far, the Fed predicts the fourth hike before the year ends, likely coming in December. Global oil markets are dominated by uncertainty, too, with the oil prices plummeting and then soaring again. Investors are awaiting the OPEC+ meeting in early December with the oil production cut likely to be endorsed to bolster prices. In the medium term, traders are wary that the oil market supply might be too high. Ivan Marchena, Libertex Analyst
  12. Europe’s Markets Anxiously Waiting for the Brexit News and Italy’s Budget Developments European investors are waiting hopefully for further progress in the US-China trade dispute to happen after some positive developments have occurred along this avenue. On the negative side, markets will continue to face pressures due to Brexit uncertainties and Italy’s next-year’s budget issues that have still not been fully resolved, financial scouts note. Meanwhile, investors keep hoping that US won’t slap new tariffs on the Chinese imports. China says it doesn’t want to fight a trade war with the United States, while the US pledges Washington “will not change course” on trade policy “until China changes its ways.” European traders are also anxious to know what new Brexit moves are actually to be made now that London and Brussels have worked out a draft divorce deal, as the UK prepares to leave the European Union on March 29, 2019. After the draft deal has been pulled off, it needs the approval of UK MPs and each EU member state. And if it has not been approved before the Brexit day, ‘hard’ Brexit might be brought about with negative outcomes to possibly hurt the UK and the remaining EU members. Yet another source of concern for investors is Italy’s 2019 budget turmoil with European Commission’s report on Italy's debt to be issued on upcoming Wednesday, November 21. Traders are wary that disciplinary procedure might be brought against Italy, if the country’s draft budget challenges its tax and budget commitments to the EU. In France, the “yellow vest” protests against fuel price rises still continue. And though President Emmanuel Macron says he “hears the anger”, he seems to be set to keep taxing fuel. Ivan Marchena, Libertex Analyst
  13. EU Markets Cheered by the Draft Brexit Deal, But Investors Are Wary About Italy’s Economic Challenges Europe’s markets are likely to be headed south as the US-China trade relationship has been stubbornly dominated by uncertainty, and also due to Italy’s economy quandary and overwhelmingly pessimistic oil market sentiment. On the plus side, the European markets will be bolstered by the news that the EU divorce deal has been eventually reached. Despite the array of pessimistic forecasts, London and Brussels have successfully struck the Brexit withdrawal deal on all items discussed including the most touchy and contentious ones. As far as the US-China trade spat is concerned, there has not been a hint of certainty about how and when it will be resolved. Still, investors are hopeful that the two opposing countries will get back to the negotiation table soon. Meanwhile, Italy’s budget deficit has remained the front-burner concern for Europe, as Italy refuses to revise its draft budget for the next year including the country’s GDP growth rates and the budget deficit figures. Amid the budget turmoil, the Italian treasuries and government bonds yields are growing at an accelerated pace, which might trigger a full-blown debt crisis, as yet today, Italy is Europe’s second largest debtor after Greece. In the French market, investors were upset by the US President Donald Trump’s bashing concerning France’s high wine import taxes curbing US wine sales in the country. Financial scouts say that the markets are anxious globally. Oil prices change their direction every time fresh news appears, but in the medium run, traders fear that the oil supply may be excessive. Ivan Marchena, Libertex Analyst
  14. Europe Worries About Oil and Waits for the U.S. Federal Reserve System to Decide on the Rates European stock markets are feeling optimistic after the results of the U.S. midterm Congressional elections were announced. However, some uncertainties remain due to the Brexit terms and ambiguous trends in the global oil prices. In the course of the U.S. midterm Congressional elections Democrats won the House of Representatives, but Republicans still control the Senate. The U.S. President Donald Trump is expected to meet with certain difficulties in implementing his initiatives, especially the trade ones. Thus, there is reason to hope that he will not be able to bring up new restrictions, particularly, ones affecting the importing of the European goods. Financial scouts are certain that the global investors will direct their attention to the December meeting of the U.S. Federal Reserve System, at which it can decide on increasing the rate. Forecasts expect it to be raised to 2.25-2.5%. Investors also await news of the Brexit terms. Uncertainties of the global oil market are a cause for unrest in Europe as well. New U.S. sanctions against Iran introduced on November 5, stipulate some countries to be temporarily exempt. Italy and Greece made it to the list of those exceptions in Europe. However, the list turned out to be quite a complicated matter for the European investors. For example, Spain has been purchasing Iranian oil as well, but it failed to be included, while Italy was. Ivan Marchena, Libertex Analyst
  15. Financial Scouts Say Europe’s Traders Will Continue To Follow News About The US-China Trade Conflict, Brexit Europe’s stock markets will continue to face some pressure due to the US-China standoff resolution uncertainty. EU traders will also keep track of the Brexit news and global oil market developments. Trade differences between the US and China will remain the focus of interest for European investors. The news regarding the trade spat are quite contradictory, with the markets propelled upwards and downwards interchangeably every time a fresh piece of trade war news appears. However, some progress has been seen here, so traders are awaiting positive updates on this arena. Brexit news looks similarly ambiguous. London and Brussels have little time ahead to agree, which fuels traders’ concerns, as they apprehend that a ‘hard’ Brexit will happen. Meanwhile, some headway has been seen here, too. Specifically, concessions have reportedly been secured from Brussels to keep the whole of the UK in a customs union in the wake of Britain’s withdrawal. Another market experiencing a quite high volatility is the oil market, with the volatility driver being Washington’s new anti-Iran sanctions that came into force on November 5. Traders originally expected that new sanctions might drive oil supply shortage in the global market due to the apprehended Iranian oil exports cut. But in light of waivers given to some countries the oil undersupply seems unlikely to happen. Ivan Marchena, Libertex Analyst
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