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 higher but European markets mixed

Article By: ,  Senior Market Analyst
January 29, 2019 5:06 AM
The FTSE is higher this morning but European markets are more of a mixed bag following a series of profit warnings from major US companies and Californian utility PG&E filing for bankruptcy protection. Fresh concerns over the US-China trade dispute are hitting the DAX, big European car makers and luxury brands.

Little hope of trade dispute resolution Wednesday

The relationship between the US and China is about to become more complicated again after the US brought criminal charges against telecommunications maker Huawei and the company’s chief financial officer Meng Wanzhou who is also the daughter of Huawei’s founder. The two countries were about to start trade talks in Washington on Wednesday but with China fiercely opposing the Huawei criminal case and arguing that the US is using it to suppress Chinese companies the prospect of a resolution to the talks is quickly fading. 

Instead what the market could be facing now is that the US will double its tariffs on some Chinese imports when the current truce period expires in March. Neither the stock markets nor some of the currency markets are taking this well: Asian stocks, German exporters to China and the dollar are being hit the most but the renewed frictions have been good news for the yen which is attracting safe haven buying.
  
Tesco shares flat after job cuts

Following a quick selloff after the market opened this morning Tesco shares are trading flat as the company revealed it would cut 9,000 jobs across the country. The cost cutting exercise will mainly consist of reorganising the chain’s meat, fish and deli counters and stopping its offering of hot food. The retailer’s shares have been rising since early January after the company posted the best Christmas trading numbers in almost ten years but the company’s growth remains too low-key from investors’ perspective. Christmas provided a brief respite for the UK supermarket chains which have been under pressure from falling sales, partially caused by Brexit concerns and partially by lower income.
 
Pound flat ahead of Brexit vote Tuesday

Sterling is almost flat lining against the dollar and the euro ahead of a key vote on Brexit Tuesday. The Prime Minister’s new proposal has included suggestions from across the benches but it remains to be seen whether they are big enough to give the deal a green light, particularly given how many MPs voted against it only  a couple of weeks ago.

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