FTSE falters as election is confirmed for 8 June
|The FTSE fails to make any headway as ongoing political uncertainty maintains threat of further selling.
- FTSE pauses for breath after yesterday’s selloff
- Morgan Stanley wraps up US bank earnings season in style
- Crude crumbles despite OPEC hint of potential further cuts
The FTSE has suffered a somewhat disappointing end to Wednesday’s trade, as early gains were eroded in the wake of the vote to dissolve parliament ahead of a snap General Election in seven weeks’ time. After yesterday’s dramatic crash for the FTSE, today has been more about stability as traders seek to ascertain whether such a dramatic selloff is really justified ahead of what looks likely to be a landslide for the Conservatives.
Earnings from the big US financials kept on rolling today, as Morgan Stanley’s bond trading unit helped drive a 70% increase in profitability. Coming off the back of a number of years where the firm lagged behind its competitors, we are finally seeing CEO James Gorman’s policies bear fruit just in time for the promised bounty Trump is expected to bring the sector.
A busy afternoon for the energy market has seen the price of crude tumbling towards a near 11-month low, despite OPEC setting 25 May as the date for discussions over an extension to the current output cuts. Despite a declaration from OPEC’s Secretary General that we are seeing the oil market rebalance, there is a distinct feeling that there are limits to the oil price gains even if we see an extension to the current cuts.
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