FTSE lower DAX recovers from bank break up
Fiona Cincotta April 26, 2019 10:52 AM
Corporate news weighed heavily on the FTSE this morning with a mixture of results, negative profit guidances and investigation news dragging the index down.
Corporate news weighed heavily on the FTSE this morning with a mixture of results, negative profit guidances and investigation news dragging the index down. Top of the list was the significantly lower profits at the Royal Bank of Scotland which caused a prompt selloff and a 5.3% decline in the bank’s shares. The worst hit was the bank’s mortgage lending where borrowers' appetite for big ticket purchases has been dampened by Brexit. Just Eat, on the other hand, blamed warm weather in February and a later Easter for a decline in orders in the same quarter.
Surprisingly the DAX is trading higher despite a slide in Deutsche Bank a day after a major tie-up with Commerzbank fell through. On Friday the bank reported an increase in net profits but income at its bond trading division - which makes up more than half of the group’s income - dropped nearly 19% on the quarter.
US GDP numbers to dominate dollar trading
Dollar traders are positioning themselves for a set of strong US GDP data, due to be released later today, and are nudging the dollar higher towards the peak levels of this year. The number will provide some clarity over increasingly confusing US economic data, which shows continued strength in some parts of the economy, but also the first warning signals of a potential slowdown in others.
The pound has recovered from yesterday’s plunge against the dollar and is trading in positive territory but the progress is fairly slim. Brexit headlines have thinned out compared with March but the fundamental lack of clarity about what comes next is keeping sterling low, just shy of $1.290.
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.