FTSE slightly higher on fund play

Absence of fresh trade tension news and a rally in Ferguson are helping the FTSE trade slightly higher.

Absence of fresh trade tension news and a rally in Ferguson are helping the FTSE trade slightly higher. But the index’s anaemic rally is being held in check by the limbo ahead of the first Tory leadership vote and a plunge in Persimmon’s shares. Plumbing merchant Ferguson gained over 6% after an activist investor revealed it was a large buyer of the company’s shares.

Retailers' shares are also sliding. Tesco, the country’s biggest retailer, has just reported that it struggled to make profit in the last quarter and investors fear that its less cost efficient retail peers are likely to show even lower profits when they report later in the month.

For the moment the Tory party leadership contest is still a blur, with 10 candidates in the running, all offering mixed messages on Brexit. More clarity will be provided later this afternoon after a vote by Tory MPs narrows down the group. The pound is reflecting an overall lack of enthusiasm over the outcome of the vote, sliding against both the dollar and the euro.

The dollar is still digesting Wednesday’s unimpressive US inflation data which has reinforced investors’ expectations that the Fed will start cutting rates sooner rather than later. Money markets are also reacting in kind, with short term US Treasury yields pricing in further rate declines.

Concerns over tanker safety issues in the Arabian Gulf are pushing oil prices higher, lifting them from a dip below $60 Wednesday back to $61.75


Please note these products may not be available to trade in all regions.

Related Articles

Join our live webinars for the latest analysis and trading ideas. Register now

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.

For further details see our full non-independent research disclaimer and quarterly summary.