FTSE higher ahead of China deal, earnings
Fiona Cincotta January 13, 2020 10:21 AM
European markets are trading higher despite a dip in Asian markets with local investors pegging their hopes on a recovery in trade following the signing of the US-China trade deal.
European markets are trading higher despite a dip in Asian markets with local investors pegging their hopes on a recovery in trade following the signing of the US-China trade deal. There is no official date set yet for the signing but with the Chinese top trade envoy currently on his way to the US the two sides are expected to put pen to paper before the end of this week.
On the FTSE side BAE Systems was the biggest gainer despite the Iran tensions going on the back burner for the moment, particularly after Iran admitted that it mistakenly shot down a Ukrainian plane leaving the country.
Property developers and house builders are on the rise ahead of earnings results from Taylor Wimpey Tuesday and Persimmon on Wednesday.
Pound drops below $1.30
The UK economy is still digesting its Brexit apprehension and is barely showing signs of life with growth of 0.1% in the three months to November. Although there have been a few positive economic numbers over the last few weeks, including slightly higher housing prices, the glacial pace of economic growth is causing some concern for the Bank of England.
Over the weekend two of its Monetary Policy Committee members indicated a shift in the Bank’s view saying that they are considering voting for a rate cut at the Bank’s next meeting. The pound dipped 0.68%, sliding below the $1.3 level for the first time since the election.
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.