The spread of the coronavirus seems to have slowed down in the worst affected cities in China with fewer new cases reported than before. This coupled with a strong close in the US helped lift the FTSE, notably miners and airlines.
Other major moves were mainly driven by speculative trade with NMC Health rising 3.19% following a recent approach from a US investment firm and TUI dropping 3.5% as investors took profits off the table following yesterday’s flash rally of 12%. The recently merged Just Eat Takeaway.com also made strides, gaining 2.2%.
Brent back above $55
OPEC+ may be within a whisker of getting Russia’s approval to cut the production further in order to help support oil prices which have been sliding since the outbreak of the coronavirus.
A special OPEC committee recommended a cut of 600,000 bbl last week but until now Russia has been reluctant to go along with the proposal. Today Russia’s energy minister said he is studying the proposal and plans to meet with the heads of Russia’s largest oil companies. Brent crude has already bounced to $55.3 this morning and if Russia approves the cuts may rally further.
Sterling boosted by rail link approval
After flailing for a few days in the face of Britain’s deteriorating trade setup with Europe and the US the pound staged a comeback this morning, energized by the UK’s potential spending plans. Boris Johnson’s approval of the HS2 high speed rail link between London, Birmingham, Manchester and Leeds has given investors hope that the government is close to approving a stimulus programme that will provide support to the economy and indirectly help the pound.
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.