Company results lift FTSE
A slew of earnings with mixed results nudged the FTSE higher this morning with changes in US regulation set to benefit tobacco makers, while the weaker pound is helping the food industry. DS Smith’s planned unit sale and Paddy Power’s decline in net profit also added to the mix.
European car makers under pressure
While the FTSE is holding above the red line, the DAX and other European gauges are under pressure, feeling the drag from the car industry. Just how fragile the industry has become is clear from a swift and substantial selloff in a small German car parts maker triggered by the company describing the business environment as extremely challenging. Various winds are buffeting car producers from different sides: because of a weaker domestic economy Chinese consumers are buying fewer expensive cars like BMW and Mercedes, the threat of Brexit is hindering sales into the UK and Trump’s import tariffs are making the US market less accessible.
Carney: Britain better prepared for no-deal Brexit
Britain is now better prepared for a no-deal Brexit than a few months ago and if the abrupt departure from the EU still materializes it may end up being a disorderly event rather than a disruptive one, according to BoE governor Mark Carney. Briefing a House of Lords committee yesterday he said that authorities have taken steps to protect derivative markets, reduce financial risk and minimize trade frictions.
Sterling traders seem to be echoing that view with the pound trading above $1.31, although the currency did weaken this morning against both the dollar and the euro. This weakening process, however, has more to do with a longer term economic outlook for Britain and the current level of inflation that remains above the BoE’s target than with Brexit. Carney noted that investors had not priced in enough monetary tightening ahead and that the bank might have to send a clearer signal to the market about the future direction of interest rates.
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
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.