FTSE lower but retailers airlines defy trend

Like most European indexes the FTSE started the day on a lower note but it is now working its way towards positive territory on the back of better than expected retail sales news and flight data from airlines.

Next and airlines surprise with December data
British retailer Next is the first high street name to update the market on its Christmas sales and the figures are proving significantly better than expected both in shops and online. The increase in the three-week run-up to Christmas seems to be making up for a slowdown in sales in November.

Overall UK services sector sales are still not making for a comfortable reading but if Next’s sales are anything to go by there may be a glimmer of hope that despite Brexit some businesses are still able to make progress. Similarly, budget airlines Ryanair and Wizzair reported significant jumps in passenger numbers in December defying gloomy flight number expectations. This is particularly important for Ryanair which has struggled with the fallout of cabin crew strikes in Germany earlier this year.

Apple forecast weighs on Wall Street, Asian markets

Still, the perky European news may not be enough to counterbalance the damage done on Wall Street late Wednesday when Apple cut its holiday sales forecasts based on much lower iPhone sales and pressures in China. As ever with Apple the move was strong enough to ripple across the market and hit other FAANG stocks and shares of major Apple suppliers. Asian markets were not immune to the decline with South Korean and Taiwanese tech shares reacting most violently.

Another day, another Brexit battle

As the new year gets underway Brexit is back on the top of the UK’s political agenda again as the Prime Minister starts another round of talks with EU leaders. She is seeking to get legally binding assurances on the issue of the Irish border ahead of another Brexit vote in Parliament next week, which, if unsuccessful, may lead to the postponing of the Brexit deadline from March to late June. The currency markets are chewing on all the possible outcomes but as they are not back to full volume of trade yet the pound reacted with slight declines against both the dollar and the euro.

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.