London stocks open on a lower note

The FTSE is somewhat deflated this morning despite economic indicators showing some improvement in the UK economy in March and April as a number of services companies, pharmaceuticals and miners drag down the index.

The first quarter reporting season in the US started off stronger than expected with better than anticipated results from JP Morgan and Wells Fargo and will get under way in earnest this week with reports from a whole set of industries, starting with Citigroup later Monday.

Parliament recess helps pound

The pound is having a break from being buffeted by Brexit news as Parliament has stopped for recess until 23 April and any talk of leadership challenges, potential second referendums and general elections waits until the country finishes its Easter egg hunts. Sterling is trading nearly 0.2% higher against the dollar and is up 0.11% vs the euro helped by an improvement in UK indicators like house prices and UK store footfall.

Oil notches lower ahead of the OPEC meeting

As OPEC gets ready for its Vienna meeting later this week Brent crude prices are notching lower but are still trading close to six months highs. Six months ago OPEC members and Russia agreed to a series of production cuts which have now filtered through the system and together with the US sanctions on Venezuela and Iran have reduced the amount of available supplies. The current wild card is the conflict in Libya which has the potential to disrupt supply flows further and may make more cuts unnecessary.

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.