FTSE higher pound stronger on day of election

It is crunch time for Britons today and the markets seem to be taking it in their stride. The FTSE gained 0.57% and the pound is a touch stronger as the country goes to the polling station. The first indicative election results will be released when the polls close around 10 pm based on a duplicate vote that a sample of voters will be asked to cast once they leave the polling stations. However, the final call will only be made shortly before the markets open Friday.

JD Sports shares are up this morning in a speculative swing following a massive selloff earlier this week. Shares in advertising firm WPP are also higher after the firm decided to buy back £300 million of its shares. The FTSE’s rally, however, is being dampened by declines in AB Foods and Hikma Pharmaceuticals.

Lagarde and the euro

Christine Lagarde will run her first European Central Bank meeting since she took over from Mario Draghi and although she is not expected to opt for any rate changes her press conference at 14.30 will be closely watched for indications that she may change tack from her predecessor.

The euro is losing some ground in early trade and is coming in weaker against both the dollar and the pound, with the latter firming up on hopes of a clear election win and consequently of a clear course on Brexit.

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.