FTSE nudges higher on mixed results
Fiona Cincotta June 17, 2020 5:08 PM
The FTSE is moving higher this morning but yesterday’s sharp rally has proved to be mostly froth.
FTSE nudges higher on mixed results
The FTSE is moving higher this morning but yesterday’s sharp rally has proved to be mostly froth. A mixed bag of results and underlying news are pulling in two directions: on the one hand the US economy seems to be picking up faster than expected after the lockdowns have been eased, on the other the threat of a second wave of COVID is becoming stronger. US retail sales rose sharply in May and recouped more than 60% of the sales lost in March and April. But at the same time Beijing is gradually going into a bigger lockdown, prompted by new cases. The city has cancelled half of the flights in and out of its main airport, the world’s second busiest.
The big movers on the FTSE are energy supplier SSE, up 9% on results, construction equipment hire firm Ashtead, still benefiting from US infrastructure plans, and property firm Berkeley Group, which rallied despite profits and revenue declining by around one third.
Germany to offer €5 billion bunds today
Having raised over €31 billion for 30-year bonds sold through banks last week, Germany will offer another €5 billion of its benchmark bunds. The safe haven asset is expected to be well received, particularly as plans are firming up for the EU to agree on a massive recovery plan in July.
A rise in US oil stocks hits WTI prices
Brent crude is gaining ground on signs of a US economic recovery but ironically, the US domestic WTI contract is lagging behind. Yesterday’s data from the American Petroleum Institute showed a rise in the level of oil stocks, caused by some of the oil still being offloaded into the US from Saudi tankers sent in May. Some of the buildup is also being created by a reduction in demand, caused by concerns that a pickup in new coronavirus cases in three or four US states will slow down both transport and industrial consumption. EIA petroleum reserve stocks later today are expected to confirm that stocks over the last seven days have been building up.
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.