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.
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.

European markets open lower

Article By: ,  Senior Market Analyst

Despite a broad recovery in the Asian markets, comments made by President Trump dampened some enthusiasm generated by the impending start of low-level trade negotiations between the US and China. The talks due to start this week come as preparation for higher level discussions later this autumn.

Trump takes aim at Fed chairman

Not for the first time, President Trump criticised the Federal Reserve Chairman Jerome Powell Monday saying he was “not thrilled” with Powell’s approach to interest rates. He took a shot at the bank’s policy of keeping interest rates high, saying it was not good for the country. The greenback slipped after the comments Monday to an intraday low and continued to trade lower early Tuesday, down 0.23% against the pound and 0.27% against the euro.

Although US business leaders are generally supportive of Trump’s approach to business these latest comments were seen as crossing the line and interfering with the independence of the central bank and the markets. They were made only days before a key meeting of central bankers in Jackson Hole on Thursday at which the bankers will discuss the implications of the trade tensions with US trade partners and could potentially hint at their next interest rate policy decision. There is some speculation that if anything, Trump’s comments may prompt the bankers to raise rates again sooner to prove their independence from the US president.

BHP Billiton net profit falls 37%

BHP Billiton led the FTSE fallers this morning with a 1.65% decline after the company reported a drop in full year net profit of of 37%. The lower profit was caused by one-off charges and masks the fact that like for many other miners this has been a very good year for BHP Billiton. The underlying profit rose 33%, allowing the company to pay out a record final dividend as prices for metals and coal rallied this year.


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.

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. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024