FTSE boosted by US corporate reporting

European markets have a spring in their step this morning, boosted by record high closes on Wall Street where Citigroup kicked off the latest US earnings season.

European markets have a spring in their step this morning, boosted by record high closes on Wall Street where Citigroup kicked off the latest US earnings season. The bank will be followed by peers JPMorgan Chase and Wells Fargo before tech giants take up centre stage later this week including Netflix, Amazon and Alphabet. 

Pound remains weak with signs of more Brexit strife

The pound struggled overnight, slipping 0.5% but recovered some ground this morning to trade at $1.2519. The bigger picture remains unchanged for the currency: the protracted Conservative leadership battle, the uncertainty over Brexit and the weakening of the economy coupled with the prospect of lower rates are combining to keep the currency under pressure. 

The latest challenge to the next PM by activist lawyer Gina Miller over a potential attempt to override Parliament on no-deal Brexit makes it abundantly clear that the next incumbent in 10 Downing Street will not find it any easier to get an agreement on Brexit than Theresa May did.

The euro was fairly stable, moving very little as investors held back ahead of the European Central Bank meeting next week.

Oil prices are still slipping a little, WTI more so than Brent, as the market settles back down following tropical storm Barry. Look out for either speculative trading or geopolotical news for the next impetus.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.