BP’s major profit increase helps FTSE

A slew of positive company news set the tone for trading across Europe and helped indices gain ground early Tuesday. With China covered in red lanterns to celebrate the Lunar New Year and closed for trading for the rest of the week, other markets are also taking a breather from the US-China trade dispute news. In London BP dominated early headlines having reported a doubling of profit this year thanks to the acquisition of massive US shale assets. The company’s shares led the gainers, followed by mining companies and Shell.

US earnings vs the State of the Union

The trading day in the US will be a game of two halves, starting with the aftermath of Google’s results and closing with President Trump’s State of the Union speech which is likely to address some economic issues but will very likely circle back to the funding of the border wall between the US and Mexico and the inevitable conflict between Trump and Congress.

Shares of Google parent company Alphabet have been sold off overnight although the firm reported a better-than-expected set of results but the fact that the increase was fueled by an unspecified investment gain and that operating costs remain high provoked some caution from investors. Pre-market trading on Nasdaq, however, looks positive and the index is now only 2% away from moving back into a bull market. The US reporting season is almost drawing to a close but a few more big names are on the agenda this week including General Motors, Disney and Kellogg’s.

Pound in a channel ahead of BoE meeting

The pound is moving in a tight channel against the dollar, waiting for the next batch of Brexit news. The Bank of England’s rate setters will be meeting later this week under circumstances made difficult by the absence of any Brexit resolution, with wage pressures rising but a weaker housing market, sliding business and consumer confidence and static industrial production. Under the circumstances not only are rates likely to remain unchanged, but other than issuing a warning, as it did in the past, there is nothing much the Bank can do at this stage until Brexit plays out.

Share: Analysis feed

CFD and forex trading are leveraged products and can result in losses that exceed your deposits. They may not be suitable for everyone. Ensure you fully understand the risks. From time to time, City Index Limited’s (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material. As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed