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 in cautious mode

Article By: ,  Senior Market Analyst
October 4, 2018 7:55 AM
FTSE in cautious mode
The FTSE is tentatively lower thanks to the stronger pound but banks and mining stocks are putting in a good performance. There might be more volatility in store for sterling today, the last day of the Conservative Party conference. Indices across Europe are also trading lower, still somewhat perturbed by Italy’s budget plans although the country made a reconciliatory step towards the EU yesterday. 

Up, up and away

Somebody in the market is having a field day with Brent Crude prices and no voice of reason will stop that, at least not until November, the due date for Iranian sanctions. Brent crude has notched up every single day this week and is now trading comfortably above $86, a level that seemed far-fetched only a few weeks ago, leaving behind the WTI contract. The case for higher WTI prices has been beaten down by rising US inventories showing there was no build-up of supply shortage. The gap between Brent and WTI has flared up to around $10 compared to only about $7 a month ago. In contrast, in London the slightly panicked oil buying is speeding up as the deadline for Iranian sanctions draws nearer and even evidence that Russia and Saudi Arabia have privately agreed to raise crude output was not enough to really halt the rally in a sustained fashion. 

Unilever resistance builds up 

The resistance against Unilever’s decision to move its headquarters to Netherlands is gaining ground as another institutional investor joins the ranks of the dissenters. The company may have difficulty getting the decision approved on 25 October because it requires consent from 75% of UK shareholders and 50% of Dutch shareholders. The investment firms opposing the move still don’t hold a stake large enough to be able to outright vote against the move, but they are gathering a following among other UK shareholders who don’t want to see the value of their stock decline. For the time being the company’s shares still continue to slide.


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