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
✖

Profit warnings and negative company news mark start of the week

Article By: ,  Senior Market Analyst
July 23, 2018 5:48 AM

Red lights are flashing across trading terminals in Europe this morning with stocks like Phillips, Julius Bear and Ferrari losing ground following earnings results, company news and cautious outlook statements.

Italy’s FTSE MIB is under the biggest pressure this morning, trading down 0.76% with car maker Ferrari among the top fallers after the company’s chief executive announced his departure. 

The FTSE is down 0.63% as airline shares are heading lower. Budget airline easyJet and British Airways parent company International Consolidated Airlines are trading down 2.3% and 1.95% respectively after their Irish-listed peer Ryanair issued a cautious outlook about the coming quarter saying that it expected a no-deal Brexit and summer strikes to hit the company’s performance in the next quarter. 

Ryanair announced a 20% fall in profit in the week after more than a 100,000 Ryanair passengers were left stranded because of series of strikes in key European locations. The current bout of strikes is being held by Ryanair pilots and for the moment is not affecting any other airlines but there are concerns that they might spark other protests particularly given that a strike by French air traffic controllers earlier this summer crippled airline traffic over Europe for a short period of time.

The dollar has hit a two week low against yen

The greenback declined to a two-week low against the yen but just about held steady against the euro following on from a sharp decline on Friday caused by President Trump’s tweets about the dollar’s strength. 

Market watchers believe that Trump is planning on using a weaker dollar as a weapon in his dispute over international trade tariffs. 

The shift in focus to the dollar’s strength started last week with Trump criticising the Federal Reserve’s rate setting policy which he said was working against the economic programme of his administration; dollar focus now continues with the president airing his opinion that the dollar is too strong.

Despite the comments from the White House the Fed is likely to stay the course and base its decision on fundamental economic data such as US home sales numbers, which are due out later today.

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