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.

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

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD consolidates weekly gains above 1.1150

EUR/USD consolidates weekly gains above 1.1150

EUR/USD moves up and down in a narrow channel slightly above 1.1150 on Friday. In the absence of high-tier macroeconomic data releases, comments from central bank officials and the risk mood could drive the pair's action heading into the weekend.

EUR/USD News
GBP/USD stabilizes near 1.3300, looks to post strong weekly gains

GBP/USD stabilizes near 1.3300, looks to post strong weekly gains

GBP/USD trades modestly higher on the day near 1.3300, supported by the upbeat UK Retail Sales data for August. The pair remains on track to end the week, which featured Fed and BoE policy decisions, with strong gains. 

GBP/USD News
Gold extends rally to new record-high above $2,610

Gold extends rally to new record-high above $2,610

Gold (XAU/USD) preserves its bullish momentum and trades at a new all-time high above $2,610 on Friday. Heightened expectations that global central banks will follow the Fed in easing policy and slashing rates lift XAU/USD.

Gold News
Week ahead – SNB to cut again, RBA to stand pat, PCE inflation also on tap

Week ahead – SNB to cut again, RBA to stand pat, PCE inflation also on tap

SNB is expected to ease for third time; might cut by 50bps. RBA to hold rates but could turn less hawkish as CPI falls. After inaugural Fed cut, attention turns to PCE inflation.

Read more
Bank of Japan set to keep rates on hold after July’s hike shocked markets

Bank of Japan set to keep rates on hold after July’s hike shocked markets

The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session. 

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Majors

Cryptocurrencies

Signatures