FTSE up marginally as UK mulls constitutional crisis

The FTSE was trading up around 32 points in early trading this morning.

The FTSE was trading up around 32 points in early trading this morning. MicroFocus International was leading a conservative rally in the index, following a big sell off in the shares yesterday. Other early gainers were NMC Health and Centrica, both up over 2% in early trade.

US markets pick up after conciliatory China comments

US markets were cautiously positive overnight, with their biggest one day showing in a fortnight (S&P up 1.27%). All eyes remain firmly on the developments in the Sino-US trade talks. No further reaction from Beijing has been forthcoming to the latest moves by the Trump administration.

Sterling takes a breather as UK opposition seeks debate

In the currency markets, traders were taking a breather after PM Boris Johnson prorogued Parliament earlier in the week. Sterling is currently holding its own against other currencies, but that will be just until further news flows out of Westminster.

Opposition leaders said they would be working over the weekend to develop their next move against a government that is seeking to keep Brexit debate time to an absolute minimum ahead of the UK scheduled exit on 31 October.

It is highly unlikely that Parliament and the increasingly cohesive opposition will roll over quietly, so expect more fireworks next week (the Labour party is already seeking an emergency debate). One strong possibility is a vote of no confidence in the government.

Silver is gathering speed

In the commodities markets silver has been picking up speed and outpacing gold in the last week or so, up 13% in August. This is partly being driven by ETF buying, in turn reflecting interest from investors in the silver market as stock markets look increasingly choppy.

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

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.