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
✖

Week kicks off with a European rally

Article By: ,  Senior Market Analyst
October 29, 2018 7:21 AM

Strong earnings from banks and positive company news boosted European markets helping them to shrug of the gloom emanating from Asia. The DAX was higher but lagged behind the FTSE’s 0.84% rally after Angela Merkel’s government suffered a loss in a regional election over the weekend. The deadline for the US sanctions against Iran are now just around the corner but Brent crude and WTI both fell in early trading as the markets are now pricing in the strong possibility that three of Iran’s biggest buyers will continue their imports from the oil-rich country despite the US restrictions.

This century’s least reliable budget

The UK Chancellor Philip Hammond is expected to announce a cautious loosening of public spending as he delivers his last pre-Brexit budget Monday afternoon. The government has promised a £20 billion a year boost for the NHS over the next five years and Hammond is expected to clarify where the funding will come from, possibly by cutting tax breaks on pension savings, looking at the defence budget or getting tougher chasing tax payments from tech giants operating in the UK. But traders will take his words with a degree of caution, aware that a non-deal Brexit would force him to tear up his plans and start operating from an emergency sheet. The currency markets were surprisingly placid ahead of Hammond’s speech at 3.30pm UK time with the pound almost unchanged against the euro and notching higher against the dollar. The budget is also likely to overshadow the latest UK mortgage data due after the market closes and expected to show that the UK housing market is continuing to decline in the run-up to Brexit.

HSBC’s 16% increase in profit

HSBC’s shares powered 4.25% higher after the company turned in a remarkable 28% increase in pre-tax profits over a revenue rise of over 6.3%. The bank managed to boost both its retail banking and wealth management operations producing earnings on a par with Barclays but much stronger than the Royal Bank of Scotland and in a different league from Lloyds. The Asia-focused lender made positive forecasts for the year ahead and said it plans to continue spending on growth with $17 billion earmarked for investing in technology and in China.


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