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
✖

Market Brief FTSE roars higher for second straight session

Article By: ,  Financial Analyst
December 16, 2019 7:42 AM

  • Market update at just after midday in London: In FX, CAD lead commodity dollars higher while JPY and USD were the weakest. Stocks were higher in Europe, led by the FTSE, after a lacklustre session in Asia overnight and a flat close on Wall Street on Friday. Oil was higher, so too were copper and silver prices. Gold was flat as a weaker dollar and ongoing “risk-on” trade provided conflicting forces.

View our guide on how to interpret the FX Dashboard

  • Sentiment towards risk assets remained positive after the US and China managed to strike a phase one trade deal and as voters in the UK delivered a surprisingly large support for PM Boris Johnson’s Conservatives - this has likely paved the way for the Brexit Withdrawal Agreement to be finally passed through parliament, ending months of uncertainty.
  • Data recap: Today’s economic data releases show a mixed real economy. China’ retail sales (+8% y/y) and industrial production (+6.2% y/y) both topped expectations, while surveyed purchasing managers among manufacturers in UK (47.4), France (50.3), Germany (43.4), and Eurozone (45.9) reported deteriorating economic activity in the sector. However, these were offset by better than expected services PMIs from France (52.4), Germany (52.0) and Eurozone (52.4), although the UK PMI (49.0) was weaker.
  • GBP: Despite the soft UK PMI data, the pound refused to give back any meaningful chunk of its election-linked gains. Investors realise the PMI data reflects sentiment before the outcome of the election was announced. UK data may well improve in the months ahead given the clearing of the dark Brexit clouds that had brought a gloomy feeling among businesses and households.
  • Stocks: UK markets have jumped higher for the second session. This comes after Boris Johnson’s big election victory alleviating some Brexit-related uncertainty. It looks like we are not the only ones bullish on the FTSE as outlined in the Week Ahead report on Friday. Goldman Sachs said it was particularly bullish on UK homebuilders and banks that have struggled recently. “Clarity on the UK’s terms of exit from the EU should unlock pent-up business investment; the reversal of a decade of fiscal consolidation should provide a fillip to domestic demand; and a pick-up in global growth should underpin a recovery in net exports,” the bank said in a note.

  • Coming up:

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