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 on RBS news but spotlight today on BoE rate decision

Article By: ,  Senior Market Analyst
May 10, 2018 5:17 AM

The FTSE 100 opened higher, up 0.26% at 7,682.02, buoyed by a higher close on Wall Street, rising oil prices and Royal Bank of Scotland news. 

Asian markets also traded higher across the board except for Singapore, with the Hang Seng up 0.9% at 30,805.88 and the Nikkei 0.3% higher at 22,486.01. 

The biggest surprise this morning came from BT as the company’s shares plunged 7.59% to 238.60 after the telecoms firm revealed plans to plug an £11.3 billion gap in its pension budget, to cut 13,000 jobs and to move its London headquarters. 

The strategy update was released as part of the company’s fourth quarter results which showed a pre-tax profit of £872 million, broadly in line with expectations, and a 1% increase in adjusted EBITDA to £2.1 billion. In contrast, Royal Bank of Scotland shares started the day on a positive note, up 6.12% at 289.60, after the bank agreed to a civil penalty to settle a mortgage probe in the US. 

RBS said it will pay $4.9 billion in fines to settle an investigation by the US Department of Justice into mis-selling of residential mortgage-backed securities between 2005 and 2007. The UK government plans to re-privatise RBS by selling £3 billion before the end of 2019 but was holding back until the DoJ dispute was resolved. All eyes today will be on the Bank of England rate decision due to come out at 11.00. 

A few weeks ago a rate increase to 0.75% from the current 0.50% seemed a given but after a series of weak economic data the decision will be less straight forward. If there is a move higher it will have the capacity to stymie house price growth and consumer spending and will in the medium term affect home builders and high street shops.

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