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
✖

Mixed message

Article By: ,  Senior Market Analyst
February 18, 2019 5:03 AM
Some positive noises from the US about progress in the US-China trade talks pushed Asian markets higher overnight but the optimism affected only some European markets. Britain’s unresolved Brexit path continues to hang over London share trading while German markets struggle with signals that the domestic economy is slowing down.

So far, US futures point to a higher open as the markets there build on the upward momentum seen late Friday.

Pound gets a breather

The weekend has brought some relief for the embattled pound, mostly thanks to the break in news flow from Westminster, and the currency notched up against the dollar to $1.2921. However, another week, and another set of uncertainties on the Brexit front will guarantee some degree of volatility. Fresh talk of a number of anti-Brexit Labour MPs resigning in order to push Jeremy Corbyn towards a different solution from what is now on the table could be helpful to the pound as the market views a no-deal Brexit as the worst potential outcome for the UK economy.

The euro is nearly flat against sterling, with trading being dominated by comments from French President Macron in favour of the EU accommodating PM Theresa May’s requests for changes on the Irish backstop issue.  

Car makers and US tariffs

The US Commerce Department pulled a major move over the weekend that could hit hard the already beleaguered German and Japanese car makers who are already in a tight spot because of slowing demand from China and, to a lesser extent, from other countries. The DoC submitted a report on the effects of these tariffs on US car markets to President Trump who has long argued in favour of protecting US car producers.

Some of the proposed tariffs are as high as 25% which would effectively cripple foreign car imports into the US. Daimler, Renault, Audi and to a lesser extent BMW’s share prices gave ground this morning, trading down to as much as 1.1% lower.

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