FTSE starts New Year with optimism over China

The FTSE is cautiously up this morning on the back of substantial optimism on global markets as the New Year begins.

The FTSE is cautiously up this morning on the back of substantial optimism on global markets as the New Year begins. There is lots of strong market sentiment around the prospects of a US/China trade deal, following an indication from the White House that phase one of the agreement could be signed in Washington in two weeks.

The news is driving mining stocks up, which have been seen as the biggest potential losers in a trade war escalation scenario. The FTSE is being led by Glencore, up 2.91% this morning, with Antofagasta not far behind at +2.47%.

Tullow shares sold off on Guyana well news

Tullow Oil has been disappointed by news that the well it was drilling offshore Guyana is not going to be quite as lucrative as hoped. The Carpa 1 well has proved to be of high quality, but just not of the size Tullow had originally forecast. Investors punished Tullow stock heavily this morning which at one stage traded down over 10%, although it is now off around 6%.

Pearson is also up this morning after a very poor 2019. News that its CEO had stepped down and the company was getting out of Penguin broke just before Christmas, but the market now seems to have digested this and shares are up 2.05% on the week.

Airbus shares rally and drive CAC 40 upwards

There has also been optimism around European stocks for a change. Airbus is riding high this morning on news that it delivered 863 aircraft in 2019. This beat forecasts and positions Airbus as the world’s pre-eminent aircraft manufacturer at a time when Boeing has been struggling. The news has pushed Airbus shares up 1.33% this morning and helping to bring the CAC 40 index up too.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

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.

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