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 rallies on Chinas olive branch

Article By: ,  Senior Market Analyst
December 6, 2019 6:35 AM

China has acted to soften the US stance in the ongoing trade negotiations by deciding to remove import tariffs on some of the soybean and pork imports from the US. The tariffs of 25% have been in place since July 2018, brought in as a countermeasure to the US tariffs on Chinese imports.  The olive branch comes after President Trump suggested that a deal with China may have to be delayed until after the US Presidential election in November 2020.

The news didn’t come a moment too soon for London stocks which have hit a nearly two-month low yesterday. This morning the FTSE rallied by over 0.8% with miners, insurers and retailers leading the way.

Among UK stocks, Associated British Foods, which owns the clothing chain Primark, bounced higher after it said it was maintaining its forecasts for growth for the next financial year.

Oil flat after OPEC decision

Meanwhile in Vienna, an arduous discussion later and the OPEC countries and Russia have agreed to extend the production cuts that are already in place by another 500,000 barrels a day, slightly more than most analysts had anticipated.

Oil’s first reaction was a bounce followed by a slight dip and then a flat line. While it all sounds good on paper it remains to be seen what this means in practice, as Russia has been lagging behind for most of this year in curbing its output except for a short period when tainted oil supplies forced it to stop outflows.  

 

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