FTSE lower as oil firm reports loss
Fiona Cincotta October 31, 2019 10:21 AM
Markets are lower as a potential opportunity for the US and China to talk at the sidelines of the APEC meeting in November has slipped out of hand.
Markets are lower as a potential opportunity for the US and China to talk at the sidelines of the APEC meeting in November has slipped out of hand. Chile was meant to host the APEC summit and a climate change conference but has to cancel both events after anti-government protests flared into violence.
Royal Dutch Shell profits in the last quarter dropped 15%, not particularly unexpected given that the oil prices in the third quarter mainly traded lower.
This week’s data shows that the US economy has slowed down a touch from 2% to 1.9% in the last quarter, and Euro-zone is expected to show only 0.1% in the last quarter, down from 0.2% in the second. At this pace of growth oil prices are unlikely to return to the highs seen earlier this year.
Lloyds shares dropped 1.5% after the company said that the PPI charge wiped out the bank’s profit for the quarter. However, the latest £1.8 billion PPI provision should now be the last one the bank will need to set aside as the deadline for the PPI claims was in August.
Finally some clarity for the currency markets. A date for the general election has been set for 12 December and the election machinery of all the major parties is gearing up to go. The pound is up nearly 0.3% against the dollar and 0.10% against the euro partially in relief that the no-deal Brexit is now off the table. However, underlying UK economic data remains less than inspiring with consumer sentiment slipping to the lowest level since 2013.
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.