FTSE Lower On Weaker Miners & Sainsbury’s

The FTSE eased back from 6-month highs reached in the previous session, pulled down by miners. Miners traced the price of metals lower as concerns grow that China will ease up on its economic stimulus efforts, in turn reducing its demand for metals. Anglo American traded some 3% lower.

Sainsbury was also out of favour following rumours that the CMA will block the merger of Sainsbury and Walmart's Asda. With the probability of this deal making it through the merger process now at just 20%, investors are ready to sell out and move on. The final report from the regulators is due out on Thursday, but there's no smoke without fire. A complete block is the most likely outcome, if not remedies that are so far reaching that the two sides will decide to walk away from the deal.

Disappointing German IFO sees EUR/USD under pressure at $1.12

The euro was trading lower for a second straight session as German IFO business climate indicator unexpectedly declined in April. German business leader's confidence in the eurozone economy took a turn for the worse, dropping to 99.2 in April, from 99.7 in March and missing expectations of 99.9.

Confidence has now declined in seven out of eight months and has fallen as manufacturing has also markedly deteriorated. Weakness in Europe's largest economy is being reflected in the data. Today's stats combined with yesterday's weakening consumer confidence for the eurozone is painting a gloomy picture for the bloc.

With Germany's GDP forecast slashed to just 0.5% down from 1% and inflation for the eurozone looking sluggish at 1.4% the ECB will struggle to find any reason to tighten monetary policy in the near future.

Facebook in focus

Facebook appears to be battling a new scandal on an almost daily basis, but advertisers, users and investors are happy to turn a blind eye. This is what we expect Facebook's results to show us after the closing bell today. User numbers are expected to have increased across all regions; revenue is expected to have jumped 25%. These would be numbers that are clearly withstanding the negative news.

Let's not forget that Facebook posted record profits and revenue in 2018 despite growing concerns over its treatment of user data and its role in the spread of fake news.

Facebook has been spending on improving the customer experience ever since the Cambridge Analytica scandal. Therefore, costs are expected to have increased and we could see these cut into Facebook's bottom line.

The share price is marginally higher today and up some 9% across the year to date – in line with the S&P. Shares are still some 16% from their record high.