Optimism surrounding the signing of the US – China trade deal quickly faded and the FTSE was pretty much on the back foot from the start of trading. The FTSE is heading into the close hovering around support at 7600 following a disappointing day for corporate updates, with Pearson, Whitbread and Hays among the laggards. The stronger above $1.3050 is adding the FTSE’s woes.
Whitbread UK Sales Fall
Whitbread disappointed with its update, as room sales fell 2.1% in the three months to November. Impacted by weaker business and consumer confidence, business and leisure bookings took a hit. This update was prior to the UK general election, and whilst the share price has jumped 20% since December on improved political and Brexit clarity, the reality is any improvement in confidence will take time to filter through into improved UK investment spend and sales.
Pearson’s Plummets
Pearson’s slumped to a 10-year low shedding over 8% following yet another profit warning from the troubled educational resource provider and publisher and the announcement if the departure of the CFO Coram Williams. With the stock down an eye watering 60% so far this year and we are unlikely to have seen the end of the sell off here. The departure of Coram Williams so soon after CEO John Fallon stepped aside will no doubt complicate the turnaround plans at the struggling firm, pushing any recovery further into the distance.
Pound holds gains
The pound has managed to remain in positive territory for a third straight session. The pound pushed above $1.3050 despite growing concerns of an imminent rate cut from the BoE and despite a solid increase in US retail sales. US retails increased 0.3% month on month, with core retail sales beating forecast at 0.5%; a good sign for the US economy. With strong job creation, 2.9% wage growth and consumer confidence at the highest level since May, households have been spending in the festive period.
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 regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD declines below 1.2500 as USD rebounds
GBP/USD declined below 1.2500 and erased the majority of its daily gains with the immediate reaction to the US GDP report. The US economy expanded at a softer pace than expected in Q1 but the price deflator jumped to 3.4% from 1.8%.
Gold drops below $2,320 as US yields shoot higher
Gold lost its traction and turned negative on the day below $2,320 in the American session on Thursday. The benchmark 10-year US Treasury bond yield is up more than 1% on the day above 4.7% after US GDP report, weighing on XAU/USD.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.