FTSE higher in Brexit breather
Fiona Cincotta April 16, 2019 11:49 AM
The FTSE is nudging higher taking its cue from an uptick in Asian stock markets but also benefiting from a respite in Brexit news and the slightly weaker poun
The FTSE is nudging higher taking its cue from an uptick in Asian stock markets but also benefiting from a respite in Brexit news and the slightly weaker pound. Insurers are leading the way higher as are several services companies, helped by a slightly weaker pound. With Parliament in recess until after Easter and the Brexit deadline rolled into October sterling implied volatility has dropped to the lowest level in 16 months. The currency is struggling to hold its ground against the euro and the dollar ahead of the release of Germany’s ZEW index and US production data.
US bank results underwhelm so far, more to come
In the US bank results will be in focus again Tuesday following underwhelming earnings from Citigroup and Goldman Sachs yesterday. Looking at the bigger picture this is the first quarter since 2016 that is expected to show overall weaker results across a number of US industries as hints of higher wages and in some areas declining demand work their way through the system. The earnings merry-go-round continues later today with earnings from Bank of America and Morgan Stanley.
Airlines facing a tough quarter as fuel prices rise
Airlines have been feeling the pinch of rising oil prices which combined with overcapacity in Europe and stiff competition is eroding earnings. Releasing its results Lufthansa said that almost two thirds of its EUR300 million quarterly loss was attributable to higher fuel costs. The subsequent 5% drop in the company’s share price triggered a Europe-wide decline in airline shares, not sparing British Airways parent ICA and easyJet
StoneX Financial Ltd (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.