After falling on the open, pulled down by Bunzl and the miners, the FTSE climbed higher across the session. A weaker pound and a mixed start on Wall Street lifted the index back towards a 6 month high and resistance at 7475 before falling back to break even

Miners were under pressure in early trade as concerns over the health of the Chinese economy hit metal prices. Economic growth of 6.4% in China was well received, however fears that it was not sustainable weighed on sentiment resulting in a mixed impact on the market. BHP also cut its iron ore production guidance in a third quarter trading update. Bunzl was the biggest drag diving 10% in the worst one day decline in three decades, as first quarter sales slowed.

China’s GDP beats estimates

China’s economy grew by 6.4% in the first quarter, retail sales and industrial production data also impressed easing fears over the health of the world’s second largest economy. Yet despite the strong data, investors are nervous that until there is a trade deal between the US and China these levels of growth could be unsustainable.

US Corporate earnings impress

Wall Street opened in a mixed fashion despite the Chinese growth figures and solid US earnings. Morgan Stanley and Pepsico rose after beating forecasts. Netflix was also up 0.5% despite a weak subscriber guidance. As investors digested, the latest batch of corporate earnings on Wall Street, the S&P hit a six-month high, however the Dow and the Nasdaq were unable to hold onto gains and slipped into the red.

Gold hits year to date low

With strong macroeconomic data releases from China and encouraging US corporate earnings demand for safe haven gold declined. Gold slumped to its lowest level since late December at $1273.04. As gold fell demand for the precious metal miners was also hit. Fresnillo traded over 2% lower.

Pound slipped as inflation stays steady

The pound dipped marginally lower versus the US dollar as UK inflation figures allow the BoE to sit on their hands for longer. UK inflation remained steady in March at 1.9%, below the central bank’s 2% target. The market had been expecting a stronger reading given the recent uptick in wages. With inflation below target and Brexit uncertainty remaining the BoE will be in no rush to start hiking 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

Feed news

Latest Forex Analysis

Editors’ Picks

EUR/USD consolidates losses as Fed moderates message

EUR/USD is trading above 1.1350, consolidating losses. The Fed's Bullard and Chair Powell have conveyed a balanced message, boosting the greenback. Treasury Secretary Mnuchin said 90% of the deal with China is done.

EUR/USD News

GBP/USD trades below 1.2700

GBP/USD is trading below 1.2700. BOE Gov. Carney said the BOE may cut rates in case of a no-deal Brexit. Boris Johnson has rattled markets by saying leaving the EU by October 31st is "do or die."

GBP/USD News

USD/JPY sticks to gains near 107.70, looks to snap 7-day losing streak

Following the sharp upsurge witnessed during the European trading hours, the USD/JPY pair has gone into a consolidation phase and is now moving in a relatively tight range in the upper half of its daily trading range.

USD/JPY News

EIA: Crude inventories decreased by 12.8 million barrels, WTI inches closer to $60

In its weekly petroleum report for the week ending June 21, the Energy Information Administration (EIA) announced that the commercial crude oil inventories in the United States decreased by 12.8 million barrels from the previous week. 

Read more

Gold finds some support near $1400 mark, lacks follow-through

Gold held on to its weaker tone through the early North-American session, albeit pared a part of its intraday slide to the $1400 neighbourhood post-US economic data.

Gold News

Majors

Cryptocurrencies

Signatures