FTSE makes small moves as festive mood takes over
Fiona Cincotta December 24, 2019 11:42 AM
The FTSE is making small moves this morning but as expected for a pre-holiday session, the index is really lacking any conviction
The FTSE is making small moves this morning but as expected for a pre-holiday session, the index is really lacking any conviction. BT and NMC Health are the outstanding fallers with Lloyds Bank and Ocado balancing out the decline.
BT shares are on course to end the year down almost 20% despite the company fighting tooth and nail to convince investors that it is capable of modernising amid recent plans to cut over £1 billion in costs. Having been one of the prime nationalisation targets on Labour’s agenda, the company rallied during the election period as it became clear that Labour was unlikely to win. For the moment, BT’s main appeal remains the 6% forecast dividend yield which is likely to slow down any further decline.
The beleaguered NMC Health has also slipped this morning but the move was fairly modest compared with the rollercoaster share moves over the course of last ten days. The company’s plan to bring in an independent agency to analyse the allegations made by short-selling specialist Muddy Waters is helping to stem any further selloff.
Gold rallies led by Asian trading
Gold rallied 0.4% in light of pre-year end book squaring. Prices for the precious metal have risen over 13% this month boosted by the uncertainty in the first half of December caused by unresolved US-China trade issues and the UK election. Though prices briefly dipped once the US and China agreed on the first phase of the deal, investors still feel that there are too many risk factors remaining in the global economy, not least the strength of the US stock market, which is constantly being questioned and keeps gold’s safe haven appeal still valid.
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.