FTSE Gains As Global Stimulus Optimism Boosts Risk Apetite

The FTSE followed Asian markets higher on the open as stimulus hopes tempered recession fears.

The FTSE followed Asian markets higher on the open as stimulus hopes tempered recession fears. Risk appetite continued to rebound, albeit cautiously following a disastrous week for stocks last week. Riskier assets such as stocks are nudging higher for a second day, whilst safe havens such as gold, the yen and bonds are falling lower.

Sentiment is improving as investors are growing optimistic that central banks across the globe will adopt a more accommodative stance to monetary policy to sure up their economies; economies which are being negatively impacted by the US – Sino trade dispute. 

1. ECB’s Olli Rehn pointed towards more "impactful" monetary policy measures.

2. China unveiled plans to cut corporate borrowing costs.


3. Several central banks have cut interest rates 

4. Eyes are turning towards the Fed Jerome Powell’s speech at the annual central bankers meeting at Jackson Hole, Wyoming on Friday. 

The next move by the market depends on whether Jerome Powell will indicate another slashing of interest rates is on the cards, potentially for September. An indication that more stimulus is around the corner could see risk sentiment pick up further.


FTSE levels to watch:
The FTSE continues to rebound from last week’s 6 month low. Yesterday saw the FTSE rally 1%. Today the FTSE is picking up where it left off. A break through 7245 could open the door to 7305 We are looking for a break through resistance at 7305 to negate the current bearish outlook. 



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.