FTSE follows US Asian market higher

The FTSE started the day stronger, building on a positive close on Wall Street caused by M&A news and a rally in Chinese markets prompted by a relaxation of infrastructure funding. More domestic M&A activity for Smith & Nephew and Compass group also helped the index’s performance.

A change in China’s key policy on funding of local government infrastructure projects triggered a healthy bounce across the country’s stock markets with the Shanghai Composite Index closing 2.58% higher on the day. A few bellicose comments from President Trump directed at China were mostly ignored by investors who expect the US and Chinese presidents to meet at the sidelines of the G20 summit in Japan later this month and make headway on the stalled trade talks.

The rally in Asian stocks spilled onto other European markets too, boosting the DAX by over 1% as the German index is heavily dependent on exports to Asia.

UK jobless data to colour sterling trade

UK jobless data will set the tone for sterling trade, helping the pound find direction after it traded nearly flat against the dollar late Monday. There was surprisingly little movement in the currency after the Bank of England’s chief economist Michael Saunders said that the central bank may have to raise interest rates sooner than the markets expected. Instead politics is moving onto centre stage with the Tory party leadership contest starting in earnest now that the deadline for nominations has expired. In this context, more volatility is almost a given.

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.