In mid-morning trading, the FTSE 100 is 30 points higher, as investors hope trade war talk will continue to diminish.

  • Trump strikes a softer tone on trade

  • UK CPI weakness hits sterling

  • Tullow revives its dividend

Trade tensions will never go away so long as Donald Trump is in charge in the White House, given his 18-century mercantilist views on trade, but perhaps an extended stalemate is coming into play. By delaying beyond the 1 March deadline, Mr Trump ensures that the issues don't go away, but the tit-for-tat tariffs of 2018 might not be so prevalent. After all, as the next election tiptoes ever closer, the idea of an all-out trade war, while sounding good for polling purposes, might not result in extra votes. Market continue to view the possible extension of the deadline as a positive, while an end to the US budget standoff would also remove another area of concern. UK CPI figures provided little relief for sterling bulls, given the lower-than-expected headline figure. But it is still Brexit that dominates, and here too extending deadlines seems to be in vogue. As the clock ticks down, the choice is probably the one the PM wanted anyway – her deal or extension.

Cautious types might wonder why Tullow has returned to paying a dividend when it still has so much debt to dispose of, but the firm's patient approach is certainly encouraging investors to look more kindly on the company. It is still a long journey to the heady days when Tullow traded for £16 a share, but the price has formed a solid base around 140p and has made heroic efforts to trim expenditure.

Ahead of the open, we expect the Dow to start at 25,465, up 40 points on last night's close.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD: Inverted hammer on daily chart highlights 50-day SMA, 38.2% Fibo.

EUR/USD takes the bids to 1.1050 during early Friday. The pair formed an ‘inverted hammer” candle while following the daily chart, which in turn favors the upside towards 1.1110/13 resistance-confluence.


GBP/USD: 3-week-old resistance-line questions 100-DMA breakout

Successful trading beyond 100-day simple moving average (DMA) fails to lend much strength to the GBP/USD pair as it struggles around 1.2520 during Friday morning. A rising trend-line since August-end, seems to challenge buyers.


USD/JPY: Bears eyeing break below 107.45

USD/JPY trades modestly flat, with the bias leaning to the downside, as we wind down into the close for the week following a data-heavy number of sessions which have left more questions unanswered and the outlook murky. 


Markets unmoved by Fed cut and pause

The Federal Reserve’s latest twist in monetary policy, reducing the fed funds for a second time in two months and then pausing for instructions has left markets without a clear direction on interest rates. Equites ended mixed.

Read more

Gold holds on to recovery gains amid trade/political pessimism

In addition to bouncing off multi-month-old rising trend-line, Gold gains support form recently downbeat trade/political headlines while taking the bids to $1,500 during Friday’s Asian session.

Gold News

Forex Majors