Welcome relief

The US decision to delay tariffs on some Chinese exports provided welcome relief for battered markets. In Europe, the DAX gained 0.60% despite economic data showing a collapse in German investor sentiment, and as growth fell on a slump in exports. The biggest gainer was the Italian FTSE MIB, which was up 1.36%, helped by a delay in deputy prime minister Salvini’s plans to call a general election.

London shares were lifted 0.33%, extending the gains made yesterday. Topping the FTSE 100 was insurance group Admiral, gaining 4.04% on news that its interim pre-tax profits rose 4%. Astra Zeneca gained 1.70% on news of positive results on its ovarian cancer drugs trials, and Vodafone gained 1.24%. The benchmark’s laggards included publisher Auto Trader and steel producer Evraz.

Improved sentiment

In Asia, Nikkei led the way, with a gain of 0.98%, while Kospi 200 gained 0.7% thanks to the energy and tech sectors. The Shanghai Composite was up 0.6%, and the Hang Seng was able to add 0.5%, despite the continuing confrontations between protestors and police.

The main US indices were all up, allowing a move back towards riskier assets, with car makers, tech companies and commodities the main beneficiaries.

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.