M & G crisis weighs on FTSE

The FTSE is yo-yoing this morning, weighed down by losses at M&G, Evraz and utility companies.

The FTSE is yo-yoing this morning, weighed down by losses at M&G, Evraz and utility companies. M&G's  property fund, which owns numerous shopping centres across the UK, pulled the brakes on investor withdrawals after sustained Brexit-related outflows. The company said it wasn’t able to sell property fast enough in the current market to fund the withdrawals.

Pound marches on

Although the UK election news flow has been somewhat subdued over the last few days, giving way to the NATO summit, the pound has still quietly rallied throughout the week on expectations of a comfortable Conservative win. The trend continued this morning with sterling gaining another 0.27% against the dollar and 0.1% against the euro. Going into the election week investors seem to be positioning themselves for a further move higher. 

Oil rallies ahead of OPEC, Aramco

A big day for oil today as OPEC and Russia meet in Vienna to discuss production cuts and Saudi Arabia Aramco publishes its final IPO price. Talk on the sidelines of the Vienna meeting is indicating that OPEC will not only look to extend existing production restrictions but will look to introduce further ones in the region of 400,000 bbl a day. The pressure to cut is not surprising given that state-owned Aramco is expected to price its shares at the high end of the indicative range of $8-$8.53, which will force Saudi Arabia’s hand in terms of what kind of oil price it needs to keep the shares on an upward trajectory. Brent hit $63.36 overnight, also helped by a surprise inventory drawdown in the US.

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.