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 Stocks Pound Rally

Article By: ,  Financial Analyst
September 4, 2019 9:39 AM

  • GBP has been the standout winner in what has been a day of above-normal range in nearly all pound crosses. Could we see some retracement on profit-taking during the NY session? USD has extended its falls for the second day following that poor manufacturing PMI report from yesterday.
  • UK services sector PMI was expected to ease to 51.0 from 51.4 but came in at 50.6 – not that it mattered much for the pound, which continued to squeeze the shorts after the dip to sub $1.20 proved to be short-lived yesterday as UK parament seized control of the Commons in a bid to stop no-deal Brexit. MPs will vote later today on a bill that would force Boris Johnson to ask EU for Brexit delay. If the bill passes, the PM has said will call a general election. Today’s services PMI miss means we now have a hat-trick of bad news after both manufacturing and construction PMIs fell deeper into contraction territory earlier this week. Earlier, Eurozone final services PMI was revised a tick higher to 53.5 from 53.4 thanks to upgrades for Germany and Spain. Eurozone retail sales came in -0.6% m/m as expected.
  • BOC rate decision is today’s main event from North America, at 15:00 BST.

  • Stocks have risen sharply so far in the day. Hong Kong chief executive Carrie Lam has said the controversial extradition bill has been fully withdrawn – this sent the Hang Seng sharply higher overnight, indirectly supporting the European markets and US index futures. We also had China’s services PMI come in ahead of expectations at 52.1 overnight. Along with the other markets, the UK’s FTSE 100 also rose – but less so because of the sharp rally in the pound.
  • Crude oil also found support from the positive tone towards risk assets, even if the fundamental backdrop remains somewhat bearish for the black stuff.

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