Market News & Analysis

FTSE flirts with flat line in absence of Iran news

The FTSE started the day on a marginally higher note but hasn’t been able to remain on an upward course with geopolitical tensions in the Middle East and high oil prices eroding a sense of stability in the market.

The brief respite in threats exchanged between Iran and the US has taken some froth off the oil market and Brent crude prices and WTI slipped down 0.42% and 0.38%, respectively. This has meant that FTSE oil firms have traded lower, losing some of the gains made yesterday. Gold is also back to $1,586 although it has dropped to the level seen before Iran tensions started.

Three days of Brexit bill

UK stocks mainly focusing on the domestic market gained ground on news that Britain is no longer making preparations for a no-deal Brexit. For the next three days Parliament will scrutinise Boris Johnson’s Brexit proposal and given that MPs have already given a provisional green light to the bill before the holidays, it is now expected to pass without serious opposition.

The pound is neutral against the dollar in light of the discussions. Without the likelihood of a no-deal Brexit there is no immediate selling pressure, yet domestic economic reading provides little reason for the currency to move  higher. Sterling is in a weaker position against the euro on concerns that the trade deals Britain will eventually end up with will not be as favourable as investors had expected.

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.