FTSE drops as economic picture remains unstable
Fiona Cincotta June 11, 2020 5:08 PM
The markets keep taking two steps forward, one step back, as trading enthusiasm keeps clashing with the current economic realities across the globe.
The markets keep taking two steps forward, one step back, as trading enthusiasm keeps clashing with the current economic realities across the globe, particularly after the Federal Reserve didn’t offer any words of reassurance yesterday about the state of the world’s largest economy.
In London, travel companies are back in the firing line as European countries keep going back and forth on their decisions whether to open their borders. Major tourist destination Greece was one of the first countries to start inviting foreign tourists but now the Greek opposition party is calling for the resignation of the tourism minister, arguing that the reopening of Greek borders came too soon. Also, Germany and Denmark are actively advising their citizens to reconsider or not to travel to Greece at all. This is replicated across numerous other European borders and will hamper travel during the crucial summer weeks. Carnival shares have dropped close to 10% while British Airways parent International Consolidated Airlines is trading down 6.9%.
After years of trying to unify its dual structure into one main unit the Anglo-Dutch consumer goods firm Unilever decided to make the UK its main base. The company faced strong opposition from shareholders two years ago when it attempted to close its London headquarters and operate only from Netherlands, but this year shareholders will find it difficult to go against the company’s decision, not only because they will not be able to physically attend meetings but also because the erosion of value caused by the corona will outweigh all other concerns. Shares are trading 1.6% higher.
Just Eat Takeaway is in the process of becoming the world’s largest online delivery firm after making a $7.3 billion bid for Chicago-based Grubhub. The merger, if successful, will ensure Just Eat’s dominance over rivals Uber and DoorDash. Shares have initially dipped but are now nudging higher 1.%
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.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital 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), GAIN Capital Singapore 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 GAIN Capital Singapore 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 GAIN Capital Singapore 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.
GAIN Capital Singapore 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.
Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.