Commons drama sees sterling rally

With rebel MPs now seemingly in control of the Commons agenda, it looks likely that the UK will be heading for a snap election in October

With rebel MPs now seemingly in control of the Commons agenda, it looks likely that the UK will be heading for a snap election in October. What looks less certain is whether there is going to be a hard Brexit, as prime minister Boris Johnson has been threatening.

Traders in GBP are braced for even more volatility following some extreme swings in the GBP/USD pair during last night's high drama in the House of Commons.

Sterling was trading at 1.21252 against the dollar this morning, 1.103 against the Euro.

FTSE sees early relief rally


The FTSE opened sharply up on Wednesday, largely a relief rally after it had been steadily sold down since the start of the week. Royal Bank of Scotland said that a rush to make PPI claims in August ahead of the FCA deadline at the end of last month has led to an additional impairment in its Q3 numbers, reckoned to be between £600 million mans £900 million. Retailer Dunelm bucked the trend in high street stocks with some good full year numbers, showing sales up 10% and profits up almost 25%. Dunelm was up 2.84% in early trading.

 Asian stocks up as Chinese data looks more robust

Asian stocks were up overnight on the back of more positive economic data, especially in the services sector. The Shanghai Compositive Index was up 0.3% as a survey of Chinese businesses indicated the fastest growth in three months. South Korea and Japan also saw gains.

US data has been less positive. A contraction in the US manufacturing sector, the first since Trump was elected, combined with ongoing worries on the China trade talks, has forced 10 year bond yields down to 1.429% yesterday.


Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.