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.
Open account
☰
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.
Open account
✖

FTSE and sterling rise after initial shock of the PM no confidence vote

Article By: ,  Senior Market Analyst
December 12, 2018 3:00 AM

The FTSE is higher but is facing a rocky day ahead after conservative parliamentarians triggered a no-confidence vote in PM Theresa May. The move has been in the pipeline for months, with serious discussions already taking place during the party conference in the early autumn, but after the PM’s Brexit proposal was shot down by most MPs, Conservative and Labour alike, and a last minute attempt to renegotiate the finer points with Brussels yesterday didn’t yield any results, tensions have come to a head. The PM will face a vote between 6 pm and 8 pm today which will determine if she will remain the leader of the party.

Whether Mrs May wins or loses the vote the turmoil is unlikely to stop there because Labour and the Scottish Nationalists are getting ready to challenge the government and ask for a new election. The outcome of that could be more radical – either a no-deal Brexit because the time will run out for a deal – or a potential full U-turn including a new referendum.

Sterling recovers from early dip

The markets seem somewhat shell-shocked by Westminster shenanigans and the FTSE’s first reaction was to move a notch higher on a mixture of hopes that Brexit might end up being delayed or potentially not even happen. Sterling initially fell back to the 20-month low mark but like the FTSE started gaining ground in early trade.

Rolls Royce gains after trading update

Rolls Royce led the FTSE gainers with a nearly 3% rally after it told investors it expected to see profit and free cash flow in the top end of its earlier guidance range this year. The group, which specialises in making engines for large airlines, has managed to overcome the supply problems it was facing earlier this year and has started stockpiling parts and materials in anticipation of an abrupt and uncontrolled Brexit. Looking beyond Britain’s divorce with the EU the company also plans to cut 4,600 jobs over the next two years as part of a larger restructuring plan.

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