FTSE stagnant despite gains in Asia

The FTSE is barely changed at the start of the week, shrugging off gains in Asian stock markets and mostly tracking the pound’s flat trading

The FTSE is barely changed at the start of the week, shrugging off gains in Asian stock markets and mostly tracking the pound’s flat trading. Asian markets initially dipped on weaker Chinese GDP data but perked up by the end of the session.

Apart from IT firm Micro Focus International most of the FTSE 100 losses are concentrated in the house building sector and among banks and insurers. Miners are holding the side up after overnight gains in gold, silver and copper prices. However, it has not been a good morning for FTSE 250-listed Sports Direct which plunged 15% after the company decided to delay the release of its results, arguing that the integration of the House of Fraser has slowed down the accounting process.

The pound is in a limbo, waiting for some more clarity on the political front and on Brexit. Conservative Party members have until this Sunday to cast their vote on Johnson versus Hunt with the final tally due to be released on 23 July.  But the tea leaves are not looking good for the pound as the currency has been declining for the last ten weeks straight.

Oil prices are also stagnant after tropical storm Barry blew over with far less damage than expected and production in the Gulf of Mexico is getting back to normal. However, it is too early for oil investors to relax as tensions in the other Gulf are still on the simmer

Please note this product may not be available to trade in all regions.Please note this product may not be available to trade in all regions.Please note this product may not be available to trade in all regions.

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.