FTSE lower even as oil prices spike following Saudi attack
Fiona Cincotta September 16, 2019 10:03 AM
Brent crude spiked 20% over the weekend after the facilities of Saudi Arabia’s state oil producer were attacked on Saturday.
Brent crude spiked 20% over the weekend after the facilities of Saudi Arabia’s state oil producer were attacked on Saturday causing the country to temporarily close down as much as 5% of global oil production.
The move was significantly more pronounced because of thin weekend liquidity but volumes have picked up since the London market opened and the price has settled at around $65.60, up 8.9%. More price shocks could be in the offing particularly after President Trump said that the US is locked at loaded, waiting to hear from Saudi Arabia on their views about the party behind the attack.
Not much surprise than that oil and utility companies are rallying in London as is BAE Systems, the UK weapons manufacturer. Still, overall the FTSE is trading lower, weighed down by investment firms and airlines.
China economic data upsets Asian markets
Asian markets proved equally cautious, upset more by comments from the Chinese Premier than the rally in oil prices. Premier Li Keqiang warned that it will be very difficult for China to grow at 6% or more this year given the current state of the global economy and his predictions were further borne out by the country’s industrial production data which were released later and showed a slowdown to the slowest rate since the early 1990s of only 4.4%, significantly below expectations of 5.2%.
UK September house prices slip
Brexit turmoil has squeezed UK house sellers into a corner causing prices to slip by a small margin for the first time in nine years.
There is little to support the pound at present and the currency gave up nearly half a percent against the dollar and is weaker 0.36% against the euro this morning.
Please note this product may not be available to trade in all regions.
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.