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 Opens higher following strong close on Wall Street

Article By: ,  Senior Market Analyst
May 11, 2018 5:22 AM

The FTSE 100 opened a notch higher, up 0.1% at 7,706.61 following on a 6th consecutive gain in the Dow Jones Industrial Average overnight. 

Asian markets mostly had a strong day Friday as the Nikkei rose 1.0% while the Hang Seng index traded 1.3% higher. However, the Shanghai Composite was down 0.1%. 

Utilities shares came under pressure on opening with Severn Trent, down 2.05%, United Utilities, down 1.31% and National Grid, down 0.65%, all trading lower, as the absence of big company news brought trading focus back to staple stocks. UK utilities are generally not the best loved stocks on the London market, and the sentiment was not helped by a similar decline in European markets Thursday when Italy’s Enel closed down 0.9%. 

Oil prices will be in focus Friday as Israel and Iran came to blows in an extensive military exchange in Syria. In response to what seems to have been an Iranian attack on Israeli territory from Syria, Israel responded with airstrikes on all Iranian infrastructure in Syria. 

This comes days after president Trump decided to withdraw from the Iran nuclear deal, a move that is about to cause tensions within Europe as Europe begun looking for ways to continue to trade with Iran rather than re-instate sanctions. Brent Crude rose to $77.25 a barrel early Friday and WTI was quoted at $71.25/bbl. 

Higher oil prices will also reflect on oil producer shares such as BP and Shell which have been trading higher for the best part of this week. The pound was also stronger in early trade at 1.3620 against the dollar and at 1.136 against the euro after the Bank of England decided to leave interest rates unchanged at its meeting Thursday. 

The bank downgraded its near-term growth outlook following a slew of weaker-than-expected economic data in May. Even though only a few weeks ago a rate increase seemed imminent this decision may now end up being postponed for later in the year. 

The sterling/euro pair will remain in focus throughout the day as the European Central Bank president Mario Draghi is due to speak at the EU State of the Union address in Florence. Draghi is expected to be positive about the Eurozone economy despite some recent weaker economic data.

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