Middle East tensions dominate trade
Fiona Cincotta June 21, 2019 10:38 AM
The tensions in the Gulf have moved up one level as the US reportedly nearly ordered an airstrike against Iran in response to several of its drones being shot down.
The tensions in the Gulf have moved up one level as the US reportedly nearly ordered an airstrike against Iran in response to several of its drones being shot down. The markets this morning are readjusting to the new reality with gold slightly lower after it hit $1,400 for the first time in six years, oil gaining half a percentage point and defence contractor BAE Systems rallying 1.45%.
The overall FTSE is higher on a mixture of risers, mainly oil, travel and supermarket chains while pharmaceuticals and luxury brands are adding weight. British Airways' parent International Consolidated Airlines is trading 0.11% lower after BA pilots called for a strike over the latest wage discussions.
In amidst the building Middle East tensions train ticketing company Trainline floated at 350 pence a share, the top end of its range, and gained another 23% in early trade. At £1.68 billion this is the second largest IPO in London this year.
Euro benefits from June growth in Eurozone services
The euro has firmed against the dollar and the pound this morning helped by Purchasing Managers’ Index data showing that the Eurozone’s service sector has slightly expanded in May. Manufacturing still remains Europe’s weak link, shrinking even further than in the previous months, but the growth in the services sector seems to be just about keeping Europe’s economic pulse alive.
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.