London stocks lower as Theresa May prepares for exit
Fiona Cincotta May 17, 2019 10:25 AM
The UK’s political tectonic plates are shifting and the country could have a new Prime Minister in less than a month after Theresa May agreed to discuss the timetable for her departure in early June.
The UK’s political tectonic plates are shifting and the country could have a new Prime Minister in less than a month after Theresa May agreed to discuss the timetable for her departure in early June. This coupled with increasing hostility from China in the wake of the US ban on Huawei and the ramp up in trade tariffs is keeping the FTSE firmly in the red.
Just Eat dropped to the bottom of the FTSE 100 after Amazon agreed to back rival Deliveroo with $575 million worth of funding. Smaller rivals were also hit as Amazon positions itself in the fast growing food delivery market.
Pound nudges lower with politics as the dominant driver
Currency moves are fairly delicate this morning with the pound slightly weaker against the dollar and the euro. The two main prompts for the decline came from data showing that car sales in Britain declined by over 4% in April compared with German car sales which were down 1.1%, and from unsuccessful domestic political wrangling.
European elections will inject more volatility into currency trading next week especially as polls show that the Liberal Democrats are in the lead to win the vote.
Oil firmer, possibly for months ahead
Brent crude is again flirting with the $73 mark this morning, trading up 0.37% since the market opened but just a touch below yesterday’s highs. The rising tensions in the Middle East and the drone attacks on Saudi facilities earlier this week are fueling a market which has already been rendered tighter than usual by sanctions on Venezuela and Iran.
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.