Market News & Analysis
FTSE opens up, Hong Kong goes to the polls
November 22, 2019 11:59 AM
The FTSE is marginally up this morning att 0.85%. The index is being led by Glencore and Spirax-Sarco Engineering, both up over 2% on the morning. Other gainers include Monzi, Bunzl and Coca Cola.
In Asian markets the Hang Seng and Nikkei both closed up. This is the last day of trading prior to elections in Hong Kong at the weekend which are being seen as a barometer of how much support demonstrators in the territory enjoy from the public at large. The Hang Seng finished the day up 128 points. In the background we have the ongoing US-China trade talks with Chinese premier Xi Jinping telling a conference today that his country was still working hard resolve the trade war.
Pound falls on Labour manifesto
The big focus in the UK has been on the Labour Party’s manifesto, which was published yesterday. Special attention is being paid to just how radical it is and what sort of damage Labour could potentially inflict on UK PLC, particularly around privatization and taxation policies. The reaction of the pound seems to have been negative, with sterling plunging this morning from 1.293 to 1.286 vs the USD having been largely range bound yesterday.
German economy dodges recession
In Europe it’s all about the German economy at the moment and what that could do to the Eurozone if it slipped into recession. Luckily Germany’s Federal Statistical Office confirmed this morning that the national economy was still growing in Q3, up 0.1%. The fact that many EUR traders were so focused on that confirmation shows just how close things stand. A number of other indicators – and influential European economists – had been predicting a recession. Despite some heavy selling of the EUR early this morning, it is now climbing back towards 1.106 vs the USD.
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.