Oil, Brexit weigh on FTSE

The FTSE is trading almost half a percent lower this morning on a mix of corporate results and lingering uncertainty over Brexit.

The FTSE is trading almost half a percent lower this morning on a mix of corporate results and lingering uncertainty over Brexit. The oil sector took the hardest hit with BP reporting a 41% drop in net profits on a mix of lower oil prices during the last quarter and impairment charges linked to the sale of one of its US units.

Election vote to be repeated Tuesday

Though the Prime Minister lost the vote on a general election on Monday, MPs will vote again on Tuesday on what is legally a different proposal which amounts to the same thing. The vote on Monday required the PM to have a two-thirds majority for the election to go ahead, the vote on Tuesday is a much more simple affair with only one-line bill which requires only a simple majority to pass. The currency market seems fairly cautious about the prospect of a general election and its potential outcomes with the pound sliding to $1.2818. Sterling is also weaker against the dollar, down 0.20%.

Dollar firms ahead of Fed rate meeting

The dollar is a touch stronger as the Federal Reserve goes into its rate setting meeting Tuesday which is widely expected to conclude with another rate cut, possibly the last one for the moment as the central bank monitors the slowing growth of the US economy. US GDP data later this week is expected to show a mild contraction in growth from 2% in the previous quarter to around 1.8% in the third.

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.