PhillipCapital DIFC Research Team

Structured Notes

Structured Notes The Complete Guide to Tailored Wealth Management in Dubai In the dynamic financial landscape of the UAE, traditional investment vehicles like bonds and equities are often not enough to meet the specific risk-return appetites of sophisticated investors. Enter Structured Notes—a powerful tool in modern wealth management that bridges the gap between fixed income and market equity. At PhillipCapital DIFC, we believe in empowering our clients with knowledge. This guide answers your most pressing questions about Structured Notes, detailing how they can enhance yields and protect capital in uncertain markets. What Are Structured Notes and How Do They Fit into a Portfolio? A Structured Note is a hybrid financial instrument that combines the features of a traditional bond with those of a derivative (like an option). Think of it as a pre-packaged investment strategy. Unlike a standard stock that moves 1-to-1 with the market, a Structured Note allows you to customize your payout. Essentially, it is a debt obligation issued by a financial institution, but instead of paying a fixed interest rate, the return is linked to the performance of an underlying asset—such as a specific stock, a global index (like the S&P 500), commodities (like Gold), or even foreign currencies. This structure allows investors to achieve specific goals, such as generating higher yields than a bank deposit or protecting their initial capital against market downturns. Why are they considered a “flexible” investment solution? The beauty of Structured Notes lies in their versatility. They are not “one-size-fits-all.” At PhillipCapital DIFC, we can tailor these notes to match your specific market view. Bullish? You can structure a note to accelerate returns if the market rises. Sideways Market? You can generate high coupons (interest) even if the market stays flat. Bearish? You can build in “capital protection” buffers that ensure you don’t lose money even if the market drops by a certain percentage. Structured Investments, Designed Around You Bespoke Structured Notes designed to match your objectives, risk appetite, and market perspective Request a Consultation How Do Structured Notes Work? What are the main components that make up a Structured Note? A typical note is constructed using two main building blocks: The Zero-Coupon Bond: This component is used to protect the principal. It ensures that a portion of your capital is preserved or returned at maturity. The Derivative Option: This is the risky part of the note that provides the potential for higher returns. It tracks the underlying asset (e.g., Apple stock or the FTSE 100). When you invest, the issuer uses the majority of your funds to buy the bond and the remainder to purchase the option. The performance of that option determines your final payout. What happens if the market goes down? Do I lose my money? This depends entirely on the “protection barrier” set when you buy the note. This is a crucial concept for UAE investors to understand. Hard Protection: Some notes offer 100% capital protection. If the market crashes, you still get your initial investment back (subject to issuer credit risk). Soft Protection (Barriers): Many yield-enhancement notes have a “barrier,” often set at 60% or 70% of the initial price. As long as the underlying asset does not fall below this barrier during the term, you receive your full capital back plus your coupons. However, if the asset price breaches this barrier, your capital is at risk, similar to holding the stock directly. Types of Structured Notes Available in Dubai What are the most popular structures for investors at PhillipCapital DIFC? While there are limitless variations, three specific types are highly popular among our clients: Reverse Convertibles: These are designed for “yield hunters.” They offer a high coupon rate (often significantly higher than standard bonds) regardless of how the market performs, provided the underlying asset doesn’t drop below a specific barrier. Autocallables: These are the most common. An Autocallable note has specific observation dates. If the underlying asset is at or above a certain level on that date, the note “calls” (ends early), paying you your capital plus a predefined bonus coupon. It’s excellent for recycling capital quickly in positive markets. Participation Notes: These allow you to participate in the upside of an asset (like a foreign index) often with a degree of capital protection attached, reducing the fear of entering a volatile market. Not sure which structure suits your portfolio? Explore Our Range of Trading Products & Solutions View Trading Products Why should choose a Structured Note over buying the stock directly? Enhanced Yield: In low-interest environments, Structured Notes can offer double-digit coupons that traditional fixed-income assets cannot match. Defined Risk: You know your entry and exit scenarios before you invest. You know exactly how much the market can fall before your capital is touched. Access: They provide easy access to difficult-to-enter markets or asset classes (like commodities or specific foreign sectors) within a single instrument. What are the risks need to be aware of? Transparency is a core value at PhillipCapital. It is vital to understand the risks: Credit Risk: A Structured Note is an unsecured debt of the issuer. If the issuing bank goes bankrupt (like Lehman Brothers in 2008), you could lose your investment, regardless of how the underlying asset performs. Tip: Always check the credit rating of the issuer. Liquidity Risk: These notes are designed to be held until maturity. Selling them early on the secondary market can be difficult or result in a loss of value. Market Risk: If the protection barrier is breached, you are exposed to the full loss of the underlying asset. How do I start investing in Structured Notes in the UAE? Investing in Structured Notes requires a regulated, experienced partner. As a firm regulated by the DFSA (Dubai Financial Services Authority), PhillipCapital DIFC ensures that every product offered is appropriate for your classification as an investor. Consultation: We begin by understanding your risk profile. Are you preserving wealth or aggressively growing it? Selection: We source notes from top-tier global investment banks to mitigate credit risk.

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Dec 24 – Daily Market Updates

Leave a Comment / Market Updates, Daily Market Updates, Uncategorized / PhillipCapital DIFC Research Team

Dec 24 – Daily Market Updates Markets Daily — Broad Market Update Overview Global markets are treading lightly into the holiday period. Equity futures in the US are little changed after a strong year-to-date run, European benchmarks are marginally firmer in thin trading, and Asia was mixed with mainland China edging higher. Bond markets are calm as traders wind down risk and liquidity thins. The US dollar remains softer on the year, while precious metals are firm as investors balance geopolitics and the prospect of further policy easing in 2026. Several exchanges are operating on shortened schedules around Christmas. Equities US: Futures are flat to slightly lower as investors weigh year-end rebalancing, a lighter data calendar, and a strong seasonal backdrop. The broader index remains near record territory after multiple weeks of gains. Europe: Stocks are fractionally higher in holiday-thinned volumes. Defensive sectors and select financials are supported by stable yields; cyclical exposures are mixed. Asia: Mainland China stabilized with a modest uptick, while other regional markets delivered a mixed performance amid cautious risk-taking. Rates US Treasuries are steady with the curve little changed. With few catalysts before year-end, ranges may remain tight, though liquidity could amplify intraday swings. Core European yields are broadly stable; peripherals are tracking risk sentiment. Currencies The dollar index is lower year-to-date, reflecting a shift toward a gentler policy trajectory and improving risk appetite. High-beta and commodity-linked currencies have firmed on the margin, while safe-haven FX is subdued. Commodities Precious metals extended gains, supported by geopolitical unease, softer real yields, and continued diversification flows. Industrial metals are holding recent advances on improving supply-demand expectations into the new year. Crude prices are range-bound as supply dynamics and growth expectations offset each other into year-end. ETFs: A blockbuster year, with a note of caution US-listed ETFs are closing the year with standout net inflows, robust primary market activity, and elevated secondary trading. Product launches accelerated across both broad beta and thematic exposures. The backdrop—rising equities, easing-rate expectations, and active sector rotation—has been a tailwind for both equity and fixed income ETFs. Liquidity and tax efficiency continue to attract both retail and institutional users. Looking into next year, expect a more discerning environment: fee competition, product differentiation, and higher scrutiny on niche themes. If volatility picks up, flows may consolidate into core, low-cost exposures and high-quality bond sleeves. Corporate highlights (broad) Year-end dealmaking remains active with selective asset sales and bolt-on acquisitions across energy, healthcare, and infrastructure, underscoring ongoing portfolio optimization and balance-sheet discipline. Index changes and periodic reconstitutions are driving stock-specific flows. Buyback authorizations and insider purchases continue to offer signals on corporate confidence but effects are idiosyncratic. Geopolitics and regional themes Hopes for de-escalation in parts of Eastern Europe have supported regional assets, though positioning remains cautious given headline risk and uncertainty around the contours of any agreement. Developments in Latin America are contributing to commodity and FX volatility; policy continuity and fiscal signals will be closely watched in early 2026. Policy watch Debate around the appropriate inflation target framework has resurfaced in policy circles. While any formal change would be a multi-year process, markets are sensitive to signals on the tolerance band around inflation and the path for real rates. Into January, attention turns to the next set of inflation and labor data, and to central bank communications that could refine the pace and timing of potential rate cuts. What we’re watching next Liquidity and rebalancing effects through the final sessions of the year Early-January data on jobs, wages, and inflation expectations Q4 earnings season previews, with a focus on margins, capex discipline, and AI-related spend Credit market tone as new-issue windows reopen China’s policy signals and growth stabilization efforts Portfolio considerations (not investment advice) After a strong run for risk assets, consider balance across quality, duration, and liquidity. Core fixed income can provide ballast if growth slows more than expected. If volatility normalizes higher, systematic rebalancing and option-based hedges may help manage drawdowns. Within equities, earnings resilience and balance-sheet strength remain key differentiators; within credit, dispersion argues for careful issuer selection. Calendar (abridged) Holiday-shortened sessions in several major markets Light data slate into year-end; fuller macro calendar resumes in early January This publication is for information only and is not a recommendation or investment advice. Markets are volatile and subject to change. Please consider your objectives and risk tolerance and consult a licensed advisor before making investment decisions. Disclaimer: Trading foreign exchange and/or contracts for difference on margin carries a high level of risk, and may not be suitable for all investors as you could sustain losses in excess of deposits. The products are intended for retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. The content of the Website must not be construed as personal advice. For retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. Rolling Spot Contracts and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of our retail client accounts lose money while trading with us. You should consider whether you understand how Rolling Spot Contracts and CFDs work, and whether you can afford to take the high risk of losing your money. Dec 24 – Daily Market Updates December 24, 2025 Dec 24 – Daily Market Updates Markets Daily — Broad… Read More Dec 23 – Daily Market Updates December 23, 2025 Dec 23 – Daily Market Updates Markets Daily: Broad Market… Read More Dec 22 – Daily Market Updates December 22, 2025 Dec 22 – Daily Market Updates Markets Daily | Broad… Read More Dec 19 –

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Stock Market Hours and Session Trading

Leave a Comment / Educational Blogs, Deliverable Equities, Stock Market Basics, Uncategorized / PhillipCapital DIFC Research Team

Stock Market Hours and Session Trading A Global Guide for UAE Traders Success in the financial markets isn’t just about what you trade; it’s about when you trade. For investors based in the UAE, the geographical advantage of being positioned between East and West offers unique access to the world’s most liquid trading sessions. However, navigating the shifting time zones of the New York, London, and Tokyo exchanges can be complex. Whether you are trading deliverable US equities, engaging in CFD trading, or hedging with Spot FX, understanding market hours is critical for managing liquidity and volatility. In this guide, we answer the most pressing questions about stock market hours and session trading, specifically tailored for the UAE time zone. What are the Major Global Stock Market Trading Sessions? The global stock market is generally divided into three major trading sessions. These sessions correspond to the operating hours of the largest financial centers in the world. The Asian Session: Dominated by the Tokyo Stock Exchange (Japan), but also includes Hong Kong and Singapore. This is often the first session to react to news from the weekend or overnight developments. The European Session: Centered around London (LSE), but also includes major hubs like Frankfurt and Paris. This session is known for high liquidity and volatility, especially when it overlaps with the Asian or US sessions. The North American (US) Session: The powerhouse of the global economy, dominated by the New York Stock Exchange (NYSE) and Nasdaq. This session typically generates the highest trading volume globally. What Are the US Stock Market Hours in UAE Time? This is the most common question for traders in Dubai, as the US market offers massive opportunities through instruments like US Stocks, ETFs, and ADRs. Since the UAE does not observe Daylight Saving Time, but the US does, the trading hours shift twice a year. Winter Timing (Standard Time – Approx. Nov to March): US Market Open: 6:30 PM (UAE Time) US Market Close: 1:00 AM (Next Day UAE Time) Summer Timing (Daylight Saving – Approx. March to Nov): US Market Open: 5:30 PM (UAE Time) US Market Close: 12:00 AM (Midnight UAE Time) Note: Pre-market and post-market trading sessions extend beyond these core hours, offering additional opportunities but with different liquidity profiles. Ready to trade global giants like Apple and Tesla? Access top US stocks and seize global opportunities. Explore US Stocks When Do the European and Asian Markets Open in Dubai? For traders looking to diversify beyond the US, the European and Asian markets provide excellent volatility. European Session (London Stock Exchange): Opens: 12:00 PM (UAE Winter) / 11:00 AM (UAE Summer) Closes: 8:30 PM (UAE Winter) / 7:30 PM (UAE Summer) Asian Session (Tokyo Stock Exchange): Opens: 4:00 AM (UAE Time) Closes: 10:00 AM (UAE Time) (Note: Japan does not observe Daylight Saving Time, so this remains relatively constant). What Are the Trading Hours for Local UAE Markets (DFM & ADX)? If you are trading local equities, it is essential to follow the specific hours of the Dubai Financial Market (DFM) and the Abu Dhabi Securities Exchange (ADX). Trading Days: Monday to Friday Opening Session: 10:00 AM (Gulf Standard Time) Closing Session: 3:00 PM (Gulf Standard Time) Trading local markets allows you to invest in the region’s growth while operating entirely within your daytime business hours. Can I Trade After the Market Closes? (Pre-Market and Post-Market) Yes, trading outside of regular hours is possible, primarily in the US markets. This is known as Extended Hours Trading. Pre-Market: Occurs before the opening bell. It allows traders to react to earnings reports or economic data released early in the morning. Post-Market: Occurs after the closing bell. Is it risky? Yes. Liquidity is generally lower (fewer buyers and sellers), which leads to wider spreads (the difference between the buy and sell price) and higher volatility. At Phillip Capital DIFC, we ensure our clients have access to robust platforms that handle these conditions transparently. Want to access markets around the clock? Explore our CFD Trading Platforms for flexible access to global indices and commodities. Explore CFDs What Is the “Market Overlap” and Why Is It Important? The “Overlap” is the golden window for day traders. This is when two major markets are open simultaneously, resulting in peak volume and liquidity. The Key Overlap for UAE Traders: Europe / US Overlap: Occurs roughly between 5:30 PM and 8:30 PM (UAE Time). During this window, the London market is closing while the New York market is opening. This creates significant price movement, making it an ideal time for day trading strategies, particularly in Indices (like the S&P 500) and Forex pairs (like EUR/USD). How Does Daylight Saving Time (DST) Affect My Trading Schedule? Since the UAE stays on Gulf Standard Time (GST) year-round, you must adjust your schedule when other countries change theirs. US Clocks Move Forward (March): The US market opens 1 hour earlier for you (5:30 PM UAE). US Clocks Fall Back (November): The US market opens 1 hour later for you (6:30 PM UAE). Missing this shift is a common mistake for new traders. We recommend adding a “World Clock” widget to your trading dashboard to stay synchronized. Why Choose a Broker in the DIFC for Global Session Trading? Trading global hours requires a broker that operates with the same global mindset. Phillip Capital DIFC is regulated by the DFSA (Dubai Financial Services Authority), offering: Safety: Top-tier regulatory oversight. Access: From local UAE stocks to US Equities and Asian Futures. Frequently Asked Questions (FAQs) Is Pre-Market trading risky for beginners? Yes, it is generally considered riskier than standard session trading. While it allows you to react to earnings released before the bell, the “Pre-Market” suffers from significantly lower liquidity. This means there are fewer buyers and sellers, which leads to “wider spreads” (a larger gap between the bid and ask price). A stock might look stable, but a small order can cause a sudden price jump or drop that wouldn’t happen during regular hours. Is

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Dec 23 – Daily Market Updates

Leave a Comment / Market Updates, Daily Market Updates, Uncategorized / PhillipCapital DIFC Research Team

Dec 23 – Daily Market Updates Markets Daily: Broad Market Update Overview US equity futures are flat to slightly higher after a strong recent stretch, with investors waiting on the next round of US growth and sentiment data. European equities are firmer in early trading, led by industrials and health care, while energy lags alongside softer crude. In Asia, performance was mixed: export- and tech-linked markets fared better, while Japan underperformed as the yen strengthened. The dollar is softer versus the yen following fresh signals from Japanese authorities about curbing disorderly currency moves. Gold remains well supported near record territory, while Bitcoin is modestly lower. Top themes shaping the session Data watch: Investors are focused on US growth revisions and consumer confidence for further clues on the timing and depth of 2025 rate cuts. Labor, housing, and spending data later this week will round out the macro picture into year-end. Cyclical rotation: Expectations for cooling inflation, potential policy easing, and relief from lower energy prices are encouraging a gradual shift toward economically sensitive areas such as financials, industrials, transport, and select consumer names. Leadership has broadened beyond mega-cap technology in recent weeks. Currency dynamics: The yen firmed after policymakers reiterated readiness to address excessive currency swings. With US yields consolidating and intervention risk top of mind, FX volatility could remain elevated into quarter-end. Policy and geopolitics: Traders continue to monitor headlines around trade, shipping routes, and regional tensions, all of which can influence energy, transport, and defense shares. Digital assets in focus: Institutional interest in crypto-related services is re-emerging as parts of the regulatory landscape take shape, even as spot prices consolidate. Equities United States: Futures suggest a cautious open as investors digest strong year-to-date gains and await macro catalysts. Breadth has improved, with cyclicals and small/mid caps catching a bid, while large-cap tech remains supported by earnings durability and AI demand. Participation may thin into the holiday period, raising the potential for outsized moves on incremental news. Europe: Broad gains led by industrials and health care. Retail and consumer discretionary are mixed, with balance sheets and holiday-season commentary in focus. Energy trails as crude eases. Asia-Pacific: Japan’s benchmarks slipped as a stronger yen weighed on exporters. Korea and Taiwan outperformed on continued demand along the AI and semiconductor supply chain. Hong Kong and mainland China were mixed, with policy support expectations offset by ongoing property and growth concerns. Rates US Treasuries are steady ahead of growth and sentiment prints. The front end continues to reflect expectations for rate reductions next year, while the long end consolidates after the autumn rally. Auction dynamics and year-end liquidity conditions are important near-term drivers. European sovereigns are little changed; traders are weighing softening inflation trends against cautious central bank guidance. Foreign exchange The dollar is broadly steady but weaker against the yen following official rhetoric about curbing excess volatility. The euro is range-bound. Emerging-market FX is mixed, tracking risk sentiment and commodity moves. Commodities Crude oil is modestly lower as supply resilience and demand worries offset geopolitical risk. Gold is firm near highs, supported by lower real yields, diversification flows, and geopolitical hedging. Industrial metals are mixed; China growth signals and global manufacturing trends remain the swing factors. Digital assets Bitcoin and major tokens are slightly lower, continuing a consolidation phase after a strong multi-month advance. Headlines around institutional participation and evolving regulation remain key to sentiment. Corporate and sector roundup Health care: Weight-management and metabolic therapies are again in focus following regulatory developments, supporting select pharma and biotech names. Renewables: Offshore wind projects remain under scrutiny amid permitting and regulatory reviews, weighing on some developers. Shipping and logistics: Deal interest and capacity discussions are buoying select carriers; transport and logistics also benefit from the cyclical rotation theme. Defence and aerospace: Contract wins and funding visibility continue to support the group against a backdrop of elevated geopolitical risk. Retail: Balance-sheet health and holiday traffic are under the microscope; credit conditions are diverging across traditional and online models. Financials: Banks and brokers are benefiting from improved risk appetite, steepening tendencies in the curve, and a potential pickup in trading activity. The day ahead: what we’re watching United States: Growth revision, consumer confidence, housing updates, energy inventories, and Treasury supply. Europe: Confidence surveys and central bank speakers. Asia: Inflation prints and policy commentary from Japan and China later in the week. Cross-asset: Year-end liquidity, rebalancing flows, and potential currency intervention headlines. Risk radar Policy path uncertainty: The pace and timing of rate cuts could shift with incoming data. Geopolitical developments: Energy supply routes and regional tensions may introduce episodic volatility. Liquidity conditions: Thinner year-end trading can amplify market moves. Currency swings: Elevated FX volatility—particularly in USD/JPY—can spill over into global risk assets. Desk view Market tone is constructive but selective. Participation is broadening beyond mega-cap leaders, with cyclicals drawing interest as disinflation progresses. We favor maintaining diversification across styles and regions, watching FX volatility and liquidity into the final trading days of the year. This material is provided for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Markets are volatile and subject to change without notice. Disclaimer: Trading foreign exchange and/or contracts for difference on margin carries a high level of risk, and may not be suitable for all investors as you could sustain losses in excess of deposits. The products are intended for retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. The content of the Website must not be construed as personal advice. For retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on

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Forex Currency Pairs

Leave a Comment / Spot FX and CFDs, Educational Blogs, Forex Basics / PhillipCapital DIFC Research Team

Forex Currency Pairs Explained The Ultimate Guide to Major & Best Pairs The foreign exchange (Forex) market is the largest and most liquid financial market in the world, with trillions of dollars traded daily. For traders in the UAE and across the globe, understanding the foundation of this market—Major Currency Pairs—is the first step toward building a robust trading strategy. At Phillip Capital DIFC, we combine over 45 years of global financial expertise with deep local knowledge to help you navigate these markets. Whether you are a beginner looking to place your first trade or an institutional client seeking deep liquidity, this guide answers the most critical questions about the world’s most traded currencies. Quick Guide to Major Currency Pairs Before diving into the details, here is a quick reference table of the seven major pairs you will likely trade most often. Understanding these nicknames and characteristics is essential for following market news. Currency Pair Common Nickname Key Characteristic Primary Drivers EUR/USD “Fiber” Highest Liquidity ECB vs Fed Interest Rates, Eurozone GDP USD/JPY “Gopher” Asian Market Proxy Bank of Japan Policy, Risk Sentiment GBP/USD “Cable” High Volatility UK Inflation, Bank of England Rate Decisions USD/CHF “Swissie” Safe Haven Global Uncertainty, Swiss National Bank Policy AUD/USD “Aussie” Commodity Linked Gold Prices, China’s Economic Health USD/CAD “Loonie” Commodity Linked Crude Oil Prices (WTI/Brent) NZD/USD Kiwi” Agricultural Link Crude Oil Prices (WTI/Brent) What Are the Major Currency Pairs? In the Forex market, currencies are always traded in pairs. You buy one currency while simultaneously selling another. “Major” currency pairs are defined by one key characteristic: they all include the US Dollar (USD) on one side of the trade, paired with another currency from a powerful, developed economy. These pairs account for the vast majority of daily trading volume globally. Because they are so heavily traded, they typically offer the highest liquidity and the tightest spreads. Why Should I Trade Major Currency Pairs Instead of Minors or Exotics? For most traders, especially those starting out, major pairs offer significant advantages over minor (crosses) or exotic pairs. Liquidity: Because millions of traders, banks, and corporations trade these pairs every second, you can enter and exit positions almost instantly without significant price slippage. Lower Transaction Costs: High volume leads to competition among liquidity providers. This results in tighter spreads (the difference between the buy and sell price). At Phillip Capital DIFC, we offer competitive spreads on major pairs like EUR/USD and USD/JPY to help you maximize your potential returns. Predictability: While no market is perfectly predictable, major pairs tend to respect technical analysis levels and respond logically to economic news more reliably than volatile exotic pairs. Start Trading with Confidence Looking to access deep liquidity and tight spreads on over 40 currency pairs? Explore Spot FX & CFDs Which Major Currency Pair is Best for Beginners? This is one of the most common questions we receive at our Dubai office. While there is no “easy” pair to trade, EUR/USD is widely considered the best starting point for new traders. Why EUR/USD? Stability: It is generally less volatile than pairs like GBP/USD, meaning price swings are often smoother and less erratic. Information Availability: Because it represents the US and Eurozone economies, news flow is constant and transparent. You will never struggle to find analysis or data on this pair. Cost Efficiency: It almost always has the lowest spread of any pair, meaning your cost to enter the trade is lower, which is crucial when you are learning and managing a smaller account. However, if you prefer trading during the UAE morning hours (which overlaps with the Asian session), USD/JPY is also an excellent choice due to its clear trends and high liquidity during that time. How Do Currency Correlations Affect My Trading Risk? Understanding correlations is what separates professional traders from amateurs. Currency pairs do not move in isolation; they often influence each other because they share a common currency (usually the USD). Two Types of Correlation to Watch: Positive Correlation (Moving Together): EUR/USD and GBP/USD often move in the same direction. If the US Dollar weakens, both the Euro and the Pound typically rise against it. If you buy both pairs simultaneously, you are essentially doubling your risk on the US Dollar. Negative Correlation (Moving Opposite): EUR/USD and USD/CHF often have a strong inverse relationship. When EUR/USD goes up, USD/CHF usually goes down. Trading these in the same direction (e.g., buying both) can result in one trade canceling out the profit of the other. Pro Tip: Always check the correlation before opening multiple positions. If you are already long on AUD/USD (which is linked to Gold), be cautious about opening a large position in Gold (XAU/USD) simultaneously, as you might be over-exposed to the same market drivers. What Factors Influence the Price of Major Currency Pairs? Currency prices are a reflection of the economic health of the countries they represent. To trade majors effectively, you need to understand the fundamental drivers behind them: Interest Rates: Central banks, such as the Federal Reserve (Fed) for the USD or the European Central Bank (ECB) for the Euro, set interest rates. Generally, higher interest rates attract foreign capital, strengthening the currency. Economic Data: Reports like Non-Farm Payrolls (US employment data), GDP growth, and inflation (CPI) figures can cause immediate spikes in volatility. Geopolitical Stability: Currencies like the Swiss Franc (CHF) and Japanese Yen (JPY) are often considered “safe havens.” During times of global uncertainty, investors may flock to these currencies, driving their value up against the USD. Commodity Prices: The Australian Dollar (AUD) and Canadian Dollar (CAD) are “commodity currencies.” If the price of Gold rises, AUD/USD often rises. If Oil prices surge, USD/CAD typically falls (meaning the CAD strengthens). When Is the Best Time to Trade Major Currency Pairs? The Forex market is open 24 hours a day, 5 days a week, but not every hour offers the same opportunity. The market is divided into three major sessions: Asian Session (Tokyo): Best for trading USD/JPY and AUD/USD.

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Dec 22 – Daily Market Updates

Leave a Comment / Market Updates, Daily Market Updates, Uncategorized / PhillipCapital DIFC Research Team

Dec 22 – Daily Market Updates Markets Daily | Broad Market Update A calmer tone is setting in as the holiday week gets underway. US equity futures are firmer with technology leading, European benchmarks are little changed, and Asia finished broadly higher. Safe-haven demand and rate-cut expectations are keeping precious metals supported, while government bond yields are edging up but remain contained. Market snapshot (as of 05:46 am ET; indicative) Nasdaq 100 futures: 25711.00 Stoxx Europe 600: 586.3 US 10-year Treasury yield: 4.165% Spot gold: up 1.6 % at a record high Nikkei 225: 50402.39 Opening take Equities: Technology strength is helping US futures retrace recent weakness, with global risk appetite improving. Europe is trading in a narrow band on lighter volumes ahead of holiday closures. In Asia, markets most exposed to the AI cycle outperformed, and Japan extended gains to fresh highs. Rates: Treasury yields are slightly higher into a data-heavy Tuesday, but the curve remains rangebound as investors balance disinflation progress with the timing and pace of policy easing in the year ahead. Commodities: Gold and silver are marking fresh peaks on a mix of geopolitical caution and softer real-yield expectations. Copper remains elevated on tight supply and structural demand themes. Crude oil is firmer amid ongoing supply headlines and geopolitical risk. Regional roundup United States: Risk-on tone is concentrated in mega-cap tech and the broader AI ecosystem, with sentiment aided by resilient earnings expectations into next year. Cyclical pockets remain sensitive to the rates path and growth signals from incoming data. Europe: Headline indices are modestly softer as defensives lag and traders pare exposure into the holiday. Energy and basic resources are underpinned by commodity strength, while rate-sensitive segments fluctuate with bond moves. Asia-Pacific: Gains were led by Japan and Korea on chip- and AI-related momentum. Select China-linked assets stabilized as policymakers continue to support growth and pockets of real estate credit stress see incremental relief. Credit and FX Credit spreads are steady near recent tights, reflecting benign default expectations and healthy demand for quality carry. The US dollar is broadly stable; most major pairs are confined to recent ranges in thin pre-holiday trading. Corporate currents Deal activity in software and data services remains a feature as sponsors and strategics pursue scale and recurring revenue exposure. Defense, space, and dual-use technology names continue to attract attention amid rising government outlays and a shift toward agile, software-enabled systems. Semiconductor supply chains remain in focus as high-bandwidth memory and data center build-outs drive order visibility for 2026. Themes to watch AI and productivity: Market leadership remains concentrated, but investors are watching for broader earnings diffusion as capex is monetized. Policy path: Markets are pricing easing in 2026; any upside surprise in inflation or labor tightness could complicate timing. Commodities and inflation mix: The rally in precious metals and industrial inputs is supportive for miners but could rekindle cost concerns if sustained. Positioning and sentiment: Strategist targets for major US benchmarks are tightly clustered, signaling confidence but also a risk of consensus crowding. The week ahead (key highlights; holiday-adjusted) Monday: US—Chicago Fed National Activity Index. Tuesday: Europe—new car registrations. US—Q3 GDP update, November industrial production, durable goods orders, consumer confidence. Wednesday: Mexico—unemployment; Taiwan—industrial production; US—initial jobless claims. Early close for US and many European markets (Christmas Eve). Thursday: Christmas Day—markets closed in the US, Canada, and most of Europe. Friday: Japan—Tokyo CPI, unemployment, industrial production, retail sales. Boxing Day closures across the UK, Canada, Australia and parts of Europe. Sector check Tech: Leadership intact; focus on AI infrastructure, memory, and cloud spend visibility. Materials: Precious metals and copper strength spotlight miners with quality balance sheets and low-cost assets. Energy: Crude sensitive to headlines; integrateds and services watched for capital discipline and free cash flow. Financials: Stable credit backdrop supportive for lenders and insurers; rate path remains the swing factor for net interest margins and valuations. Consumer: Confidence data and holiday spending updates will inform the durability of services demand into the new year. Risk management note Liquidity is typically thinner into year-end, which can amplify moves around data releases and headlines. Diversification and disciplined rebalancing remain important as markets transition into 2026 with elevated expectations for both earnings growth and policy support. This commentary is for information purposes only and does not constitute investment advice or a recommendation to buy or sell any security or strategy. Disclaimer: Trading foreign exchange and/or contracts for difference on margin carries a high level of risk, and may not be suitable for all investors as you could sustain losses in excess of deposits. The products are intended for retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. The content of the Website must not be construed as personal advice. For retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. Rolling Spot Contracts and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of our retail client accounts lose money while trading with us. You should consider whether you understand how Rolling Spot Contracts and CFDs work, and whether you can afford to take the high risk of losing your money. Dec 22 – Daily Market Updates December 22, 2025 Dec 22 – Daily Market Updates Markets Daily | Broad… Read More Dec 19 – Daily Market Updates December 19, 2025 Dec 19 – Daily Market Updates Market Snapshot (early US… Read More Dec 18 – Daily Market Updates December 18, 2025 Dec 18 – Daily Market Updates Markets Daily – Broad… Read More Dec 17 – Daily Market Updates December 17, 2025 dec 17

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Over-the-Counter (OTC) vs Exchange-Traded Derivatives

Leave a Comment / Exchange Traded Derivatives, Derivatives Basics, Educational Blogs, Uncategorized / PhillipCapital DIFC Research Team

Over-the-Counter (OTC) vs Exchange-Traded Derivatives A Complete Guide for UAE Investors In the dynamic world of financial markets, derivatives play a pivotal role for both sophisticated investors and institutional traders. Whether you are hedging against price volatility in commodities or speculating on future market movements, understanding the venue of your trade is just as important as the asset itself. At PhillipCapital DIFC, we often encounter clients asking about the structural differences between how products are traded. Specifically, the distinction between Over-the-Counter (OTC) and Exchange-Traded Derivatives (ETD). While both derive their value from an underlying asset, they operate in fundamentally different ecosystems with unique risks, regulations, and opportunities. We break down these differences to help you decide which instrument best aligns with your portfolio goals. What Are Exchange-Traded Derivatives (ETDs)? Exchange-Traded Derivatives (ETDs) are standardized financial contracts that are bought and sold on a regulated exchange. When you trade an ETD, you are not trading directly against a counterparty of your choice; instead, you are trading through a centralized marketplace that acts as an intermediary. Key examples include Futures and Options listed on major global exchanges like the CME (Chicago Mercantile Exchange) or locally on the DGCX (Dubai Gold & Commodities Exchange). Because these contracts are standardized, every specification—such as the contract size, expiration date, and tick value—is predetermined by the exchange. This standardization promotes high liquidity and transparency, as all market participants see the same price. Crucially, ETDs effectively eliminate counterparty risk through a “Clearing House.” The clearing house guarantees the trade, ensuring that even if one party defaults, the trade is honored. Interested in trading regulated Futures & Options? Explore Our Global Futures Products Here Trade Regulated F&O What Are Over-the-Counter (OTC) Derivatives? Over-the-Counter (OTC) derivatives are traded directly between two parties without a centralized exchange. This is a decentralized market where participants—often banks, brokers, and institutions—negotiate the terms of the trade privately. The most common example of OTC trading for retail and professional investors is Spot FX and CFDs (Contracts for Difference). When you trade a CFD on Gold or a Currency Pair with PhillipCapital DIFC, you are entering into a contract based on the price movement of that asset, but the transaction does not pass through a physical exchange floor. The primary advantage of OTC derivatives is flexibility. Unlike the rigid structure of exchange-traded products, OTC contracts can often be tailored to specific needs regarding size and duration. However, because there is no central clearing house, the reputation and regulatory standing of your broker are paramount. Key Differences: OTC vs. Exchange-Traded Derivatives How do liquidity and transparency differ between the two? Transparency: ETDs offer the highest level of transparency. The price, volume, and open interest are publicly available in real-time. In the OTC market, transparency depends on the broker and the liquidity providers they connect with. Liquidity: ETDs generally have deep liquidity for popular contracts (like S&P 500 Futures), but less popular contracts can be illiquid. The OTC market, particularly in Forex, is the largest and most liquid market in the world, operating 24 hours a day with trillions of dollars traded daily. What about Counterparty Risk? This is perhaps the most critical distinction. ETDs: The clearing house stands between the buyer and seller. This mitigates the risk of the other party failing to pay. OTC: You are exposed to the counterparty risk of the entity you are trading with. This is why it is vital to trade with a broker regulated by a top-tier authority, such as the DFSA (Dubai Financial Services Authority). A regulated broker like PhillipCapital ensures client funds are segregated and strict capital requirements are met, significantly reducing this risk compared to unregulated offshore entities. Are the costs and accessibility different? Generally, yes. Entry Barriers: OTC products like CFDs often have lower barriers to entry, allowing for smaller contract sizes (micro-lots) and flexible leverage. Costs: ETDs usually involve exchange fees and clearing fees on top of commissions. OTC costs are often built into the “spread” (the difference between the buy and sell price) or a commission per lot. Looking for flexible leverage and competitive spreads? View Our CFD & Spot FX Offerings Explore CFDs & Spot Fx Which Derivative Type Fits Your Strategy? If you are a corporate entity or a professional trader looking to hedge specific exposure (e.g., an airline hedging fuel costs), Exchange-Traded Futures are often preferred due to their standardized nature and the security of the clearing house. They allow for precise hedging strategies that align with global benchmarks. However, if you are a sophisticated investor looking for short-term opportunities in currency movements or require contract sizes that don’t match standard futures lots, OTC derivatives (CFDs/Spot FX) provide the agility you need. They allow you to enter and exit positions quickly without worrying about contract expiration dates or physical delivery logistics. Can I trade both at PhillipCapital DIFC? Absolutely. We operate a hybrid model that grants you access to the best of both worlds. You can trade standardized Futures on the DGCX or CME, and simultaneously manage an OTC portfolio in Spot FX or CFDs. Our status as a DFSA-regulated entity ensures that regardless of the venue, your trading adheres to the highest standards of safety and compliance. Conclusion Both OTC and Exchange-Traded Derivatives offer powerful tools for wealth creation and risk management. The choice between them depends on your need for customization, your risk appetite regarding counterparties, and your preferred trading hours. By choosing a regulated partner like PhillipCapital DIFC, you ensure that whether you trade on the exchange or over-the-counter, you are supported by world-class infrastructure and regulatory oversight. Ready to start your trading journey? Open Your Account Today Open an account Disclaimer: Trading foreign exchange and/or contracts for difference on margin carries a high level of risk, and may not be suitable for all investors as you could sustain losses in excess of deposits. The products are intended for retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private

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Dec 19 – Daily Market Updates

Leave a Comment / Market Updates, Daily Market Updates / PhillipCapital DIFC Research Team

Dec 19 – Daily Market Updates Market Snapshot (early US hours) US equity futures: slightly higher Europe: largely flat Japan: solid gains, led by exporters Dollar-yen: stronger, trading around the mid-157s Bitcoin: firmer Key drivers today Japan’s policy shift: Japan’s central bank lifted its policy rate to the highest level in decades and signaled that further normalization remains possible. Japanese 10-year government yields pushed higher and the move spilled into global rates. The yen weakened as guidance was viewed as gradual rather than aggressive. Year-end positioning: US stocks are edging up as investors lean into the typical late-December tailwind, with flows still favoring equities on expectations for easier financial conditions in the year ahead. Europe’s policy backdrop: The EU advanced additional financial support for Ukraine via joint issuance, underscoring ongoing fiscal coordination. European equities are mixed with defensives balancing cyclicals. AI spending debate: Markets continue to sort out winners and laggards from the AI investment cycle. Hardware and memory remain bid as capacity builds, while some software names face questions about pricing power and product disruption. Crypto and risk tone: Digital assets are broadly firmer alongside a mild “risk-on” tone, although liquidity is thinning into the holidays. Across asset classes Equities: Asia outperformed, led by Japan. Europe is near unchanged as investors digest higher yields and regional headlines. US futures point to a modestly positive open with semis and AI-levered infrastructure names in focus. Housing-related shares remain sensitive to guidance and the rate path, while consumer discretionary is mixed on uneven China demand signals. Rates: Global government bond yields nudged higher after Japan’s move. US Treasury yields are a touch firmer with the curve little changed. Into year-end, supply is light, and rebalancing flows may drive pockets of volatility. FX: The dollar is stronger versus the yen on divergent rate trajectories; the euro is steady. Commodity FX is mixed, tracking oil and broader risk appetite. Commodities: Crude holds a softer tone amid ample supply and stable inventories. Gold is range-bound as higher nominal yields offset safe-haven interest. Industrial metals trade mixed with China activity data in focus. Digital assets: Bitcoin and major tokens are higher, with options activity and year-end positioning adding to intraday swings. Corporate and sector highlights Tech hardware/infrastructure: AI-related capex continues to channel toward memory, storage and networking, keeping select suppliers in favor. Software: Some subscription-based names face valuation and product-cycle questions as AI-native tools reshape demand. Consumer: Global sportswear and lifestyle brands are navigating uneven China recovery and brand-mix headwinds. Transportation and logistics: Guidance updates remain a swing factor as firms balance cost controls, aircraft/fleet constraints and macro-sensitive volumes. Housing: Builders’ outlooks reflect affordability challenges and cautious buyers, though any dip in mortgage rates could stabilize sentiment. What we’re watching Central banks: Follow-through from Japan’s policy shift; any guidance from major central bank speakers before the holiday lull. Macro data: US housing, consumer, and inflation inputs over the next several sessions; European confidence surveys; Asia trade and production figures. Market mechanics: Year-end rebalancing, quarter-end options positioning and lower liquidity can amplify moves into the holiday period. Geopolitics: Energy flows, shipping routes and European policy developments remain key risk markers. Strategy thoughts The late-year grind higher has broadened participation beyond mega-caps, with international equities making relative gains this year. Still, elevated valuations in select growth segments keep execution risk in focus, especially around AI return-on-investment timelines. Higher global yields post-Japan could challenge duration-sensitive assets near term, though an orderly repricing with contained inflation expectations would be manageable for equities. Within equities, balance quality growth exposure with cyclical beneficiaries of easing financial conditions; in credit, emphasize higher-quality issuers given tight spreads. Levels and themes to keep on the radar US 10-year yield: Bias modestly higher after Japan’s move USD/JPY: Supported while policy divergence persists Oil: Range-bound with a slight downside skew on supply Gold: Sideways as real yields and dollar offset haven demand Crypto: Elevated volatility into options expiries and holidaysNote: Market levels referenced are directional and may have moved since publication. Disclosure This material is provided for informational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security or financial instrument. Markets are volatile and subject to change. Consider your objectives and risk tolerance before making investment decisions. Disclaimer: Trading foreign exchange and/or contracts for difference on margin carries a high level of risk, and may not be suitable for all investors as you could sustain losses in excess of deposits. The products are intended for retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. The content of the Website must not be construed as personal advice. For retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. Rolling Spot Contracts and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of our retail client accounts lose money while trading with us. You should consider whether you understand how Rolling Spot Contracts and CFDs work, and whether you can afford to take the high risk of losing your money. Dec 18 – Daily Market Updates December 19, 2025 Dec 19 – Daily Market Updates Market Snapshot (early US… Read More Dec 18 – Daily Market Updates December 18, 2025 Dec 18 – Daily Market Updates Markets Daily – Broad… Read More Dec 17 – Daily Market Updates December 17, 2025 dec 17 – Daily Market Updates Markets Daily — Broad… Read More Dec 16 – Daily Market Updates December 16, 2025 Dec 16 – Daily Market Updates Markets Daily: A Broad,… Read More Dec 15 – Daily Market Updates

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Bonds: Face Value, Par Value & Coupon Rate

Leave a Comment / Fixed Income, Bond Basics, Educational Blogs / PhillipCapital DIFC Research Team

Bonds: Face Value, Par Value & Coupon Rate When venturing into the world of fixed income trading, three terms appear constantly: Face Value, Par Value, and Coupon Rate. While they may sound technical, understanding the relationship between them is critical for calculating potential returns and assessing the risk of your portfolio. Whether you are an experienced trader in Dubai or an expat looking to diversify your savings, mastering these basics is the first step toward smart investing. What is the difference between Bond Face Value and Par Value? This is one of the most common sources of confusion for new investors. In the vast majority of financial contexts, Face Value and Par Value are effectively the same thing. Both terms refer to the nominal value of the bond as stated by the issuing entity (whether it is a government or a corporation). This is the amount of money the issuer promises to repay the bondholder once the bond reaches its maturity date. While the terms are interchangeable, “Face Value” is often the term used when discussing the physical certificate or the principal amount appearing on statements, whereas “Par Value” is frequently used when discussing price relative to the market (e.g., trading “at par,” “above par,” or “below par”). Why it matters to you: Regardless of what you pay for a bond today (the market price), the Face Value is what you will receive when the bond matures (assuming the issuer does not default). What is a Bond Coupon Rate and how is it calculated? The Coupon Rate is the annual interest rate paid on the bond’s face value. It determines the steady stream of income you receive while holding the bond. The Calculation: If a bond has a Face Value of $1,000 and a Coupon Rate of 5%, the issuer will pay you $50 per year. Formula: (Coupon Rate x Face Value) = Annual Interest Payment Payment Frequency: Most bonds pay this interest semi-annually. In the example above, you would likely receive two payments of $25 each year. Crucial Note: The Coupon Rate is fixed at the time of issuance. Even if the market price of the bond changes daily on the exchange, your coupon payment amount generally stays the same (unless it is a floating-rate note). Are you looking for a steady stream of income? Explore Bonds Why do bonds trade at prices different from their Face Value? You might ask, “If a bond is worth $1,000 at maturity, why would anyone buy or sell it for $950 or $1,050?” The answer lies in the relationship between the bond’s Coupon Rate and the current Market Interest Rates. Trading at a Discount (Below Par): If market interest rates rise higher than your bond’s coupon rate, your bond becomes less attractive because new bonds pay more. To sell your bond, you must lower the price below its face value. Trading at a Premium (Above Par): If market interest rates fall lower than your bond’s coupon rate, your bond is highly valuable because it pays better interest than new bonds. Investors will pay more than the face value to acquire it. Trading at Par: When the market interest rate equals the bond’s coupon rate, the bond typically trades at its face value. Investor Insight: buying a bond at a “discount” can be a strategic move. You pay less upfront but still receive the full face value at maturity, effectively increasing your total return (yield). How does the Coupon Rate affect the Bond Yield? This is where the “Expertise” in investing comes into play. The Coupon Rate and Yield are not the same. Coupon Rate: The fixed percentage paid on the face value. Yield (specifically Yield to Maturity – YTM): This is the total estimated return you earn if you hold the bond until it matures. It accounts for the coupon payments plus the profit or loss from the difference between what you paid (Market Price) and what you get back (Face Value). Example: If you buy a $1,000 bond for $900 (at a discount), your Yield will be higher than the Coupon Rate because you are getting the interest payments plus a $100 capital gain at maturity. Confused by Yield vs. Coupon? Phillip Capital DIFC advisors help build portfolios aligned with your financial goals. Contact Now Can the Face Value of a bond ever change? In most standard cases, the Face Value (Par Value) is fixed for the life of the bond. However, there are exceptions in sophisticated financial instruments: Inflation-Linked Bonds (e.g., TIPS): The face value of these bonds can adjust periodically based on inflation rates. If inflation goes up, the face value increases, which in turn increases the coupon payments. Amortizing Bonds: These bonds pay back a portion of the face value (principal) along with interest payments over time, meaning the outstanding face value decreases as the bond gets closer to maturity. For the vast majority of corporate and government bonds traded by retail investors, the face value remains constant. How do I choose the right bond for my portfolio? Selecting the right bond requires balancing the Coupon Rate (income) with the Credit Quality (safety) of the issuer. High Coupon, High Risk: Bonds with very high coupon rates often come from issuers with lower credit ratings (High Yield or “Junk” Bonds). They pay you more to compensate for the risk of default. Low Coupon, High Stability: Government bonds or “Blue Chip” corporate bonds usually offer lower coupon rates but provide much higher security that your Face Value will be returned. Strategy Tip: Don’t just chase the highest coupon rate. Look at the Yield to Maturity and the issuer’s credit rating to ensure the investment aligns with your risk tolerance. Where can I trade bonds in the UAE? Trading bonds requires a broker that offers access to international exchanges, as many lucrative opportunities exist in US, European, and Asian markets. At Phillip Capital DIFC, we provide a gateway to the global bond market. Whether you are looking for Sovereign Bonds,

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Dec 18 – Daily Market Updates

Leave a Comment / Uncategorized, Daily Market Updates, Market Updates / PhillipCapital DIFC Research Team

Dec 18 – Daily Market Updates Markets Daily – Broad Market Update As of 05:45 a.m. ET S&P 500 Futures: 6807.7 Stoxx Europe 600: 581.00 WTI Crude (front-month): $56.00 Nikkei 225: 49001 Bitcoin: 87283 Opening take Global equities are attempting a steadier start with US futures modestly higher and Europe in the green, while Asia lagged on profit-taking. Tech remains the primary swing factor for risk sentiment, with cyclical leadership flipping back and forth as investors weigh earnings durability against macro data and central bank guidance. Energy is supported by firmer crude, and crypto continues to climb as risk appetite improves. Macro diary United States: A key inflation update is due at 8:30 a.m. ET. Markets will parse the core trend, shelter dynamics, and goods disinflation for clues on the timing and pace of any future policy easing. Labor indicators and housing reads later in the week round out the growth picture. Europe: Major central bank decisions and fresh projections are in focus. The policy tone around inflation progress, growth assumptions, and guidance for the coming quarters will be pivotal for rate expectations and bond curves. Asia: Sentiment remains sensitive to global tech demand signals and domestic growth impulses, with currency moves and export orders under close watch. Equities US: Futures indicate a rebound attempt after recent tech-led volatility. Under the hood, leadership continues to rotate: semiconductors and AI-linked names are stabilizing, while defensives and quality factors have outperformed during downdrafts. Breadth remains a key metric—sustained gains likely require participation beyond a handful of mega caps. Europe: Broad indices are firmer, with gains in consumer and industrial names offsetting softness in health care. Rate-sensitive segments may ebb and flow with central bank headlines. Asia: Japan underperformed as investors locked in gains following a strong run. Elsewhere in the region, performance was mixed, mirroring the global risk tone. Rates and currencies Sovereign yields are little changed ahead of inflation data and central bank decisions. Curves remain finely balanced between disinflation progress and resilient growth pockets. The dollar is mixed on the day, with moves largely contained as traders await policy signals. Sensitivity to data surprises remains elevated across G10 FX. Commodities and crypto Crude oil is firmer, supported by risk-on sentiment and ongoing supply considerations. Attention stays on inventories, mobility trends, and producer guidance. Industrial metals are steady to slightly higher, with investors weighing capex cycles against global manufacturing momentum. Bitcoin extends recent gains, reflecting improved risk tolerance and ongoing flows into digital assets. Strategy check: what’s driving positioning now Growth vs. policy: Incoming inflation data and central bank communication will shape the path for policy rates. A stickier inflation mix could keep financial conditions tighter for longer; a softer print would support duration and risk assets. Factor rotation: After a powerful advance in high-momentum and AI-adjacent names, positioning risk is elevated. Periodic rotations into quality, cash-flow stability, and lower-volatility profiles have offered ballast during pullbacks. Earnings execution: With valuations above long-term averages in several markets, delivery on revenue growth, margins, and capex discipline remains critical for sustaining multiples. Global backdrop: Geopolitics, trade policy, and supply chain resilience—especially around energy, semiconductors, and critical materials—remain latent sources of volatility. 2026 watchlist: themes to monitor AI payoffs and pacing: Investment remains heavy; timelines for monetization and productivity gains are the swing variables for margins and capex returns. Valuation concentration: Market leadership is narrow; broadening participation would reduce downside asymmetry. Inflation path: Services inflation, wages, and policy-sensitive components are the key tells for the rate trajectory. Growth mix: Household resilience, corporate balance sheets, and credit conditions will define how long the current expansion can run. Policy and geopolitics: Election cycles, tariff discussions, and regional tensions can quickly alter risk premia. What could move markets next Upside inflation surprise: Could lift yields and weigh on long-duration equities while supporting the dollar. Downside inflation surprise: Likely supportive for risk assets, duration, and rate-sensitive sectors. Central bank rhetoric: Any shift in guidance around the speed or extent of future easing will ripple across curves, FX, and equity factor leadership. This material is provided for broad market commentary only and does not constitute investment advice or a solicitation to buy or sell any financial instrument. Market data may be delayed or subject to change. Disclaimer: Trading foreign exchange and/or contracts for difference on margin carries a high level of risk, and may not be suitable for all investors as you could sustain losses in excess of deposits. The products are intended for retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. The content of the Website must not be construed as personal advice. For retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. Rolling Spot Contracts and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of our retail client accounts lose money while trading with us. You should consider whether you understand how Rolling Spot Contracts and CFDs work, and whether you can afford to take the high risk of losing your money. Dec 18 – Daily Market Updates PhillipCapital DIFC Research TeamDecember 18, 2025 Dec 18 – Daily Market Updates Markets Daily – Broad… Read More Dec 17 – Daily Market Updates PhillipCapital DIFC Research TeamDecember 17, 2025 dec 17 – Daily Market Updates Markets Daily — Broad… Read More Dec 16 – Daily Market Updates PhillipCapital DIFC Research TeamDecember 16, 2025 Dec 16 – Daily Market Updates Markets Daily: A Broad,… Read More Dec 15 – Daily Market Updates PhillipCapital DIFC Research TeamDecember 15, 2025 Dec 15 – Daily Market Updates Markets Daily | Broad…

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Dec 23 – Daily Market Updates

Forex Currency Pairs

Dec 22 – Daily Market Updates

Over-the-Counter (OTC) vs Exchange-Traded Derivatives

Dec 19 – Daily Market Updates

Bonds: Face Value, Par Value & Coupon Rate

Dec 18 – Daily Market Updates

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