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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Equity Market Handover Oil fuelled bounce risks being torpedoed

Article By: ,  Financial Analyst
June 13, 2019 12:00 PM

Stock market snapshot as of [13/6/2019 3:44 PM]

  • After a session-and-a-half consolidation of the recent rebound, investors may be in the mood to add more upside, with less emphasis on ‘quality’
  • Thursday’s early-session swing off lows was not entirely down to a sudden spike in oil prices, but it played a large part
  • Both U.S. WTI and Brent benchmark crude oil futures contracts surged almost 5% higher and were last trading up around 3% on the day apiece
  • It follows reports that two tankers were attacked near the Strait of Hormuz; one by some form of projectile “shell”— some reports cited a torpedo—the other suffering three detonations
  • The attacks follow incidents around a month ago when four vessels were sabotaged in the same region. Then, U.S. authorities pointed the finger at Iran, citing naval mines
  • Before news suggesting 35% of the world’s oil supply—the amount shipped through the Strait daily—could be put in jeopardy, risk appetite was thin on the ground
  • Hong Kong protesters appear to be gearing up for more confrontations, whilst Greater China itself and the U.S. seem no nearer to resolving their trade dispute
  • Higher than forecast U.S. weekly jobless claim are keeping the monetary easing narrative going

Corporate News

  • Oil-related stocks are predictably leading in Europe, though it’s worth noting that oilfield contractor stocks saw the most interest after they were dumped particularly hard on Wednesday
  • The high-yielding residential and commercial property sector, a ‘safety’ play, rose the most
  • Europe’s tech shares rose 0.5% overall with software strongest. Hardware stocks were dragged lower by telecom equipment makers Nokia and Ericsson
  • Shipping shares surged on the S&P 500 as the tanker attack could inflate shipping rates. Frontline, the owner of one of the attacked tankers jumped as much as 11%

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