Market News & Analysis


Top Story

FTSE push-pulled by results, trade deal

The London morning session started positively enough with the signing of the US-China  trade deal and the Dow Jones Industrial Average breaking above 29,000 both sending a positive signal for UK shares. But the rally ended up being a bit unconvincing and the index seesawed around the flat line as mixed corporate news kept making the headlines. 

Publisher Pearson clocked a 10% drop in its share price after it warned investors that it expects lower profits next year and that the company’s chief financial officer is stepping down later this year.  The hardest hit were the firm’s US higher education courseware sales, a segment which makes up a quarter of Pearson’s total revenue. 

Hotel group Whitbread also slipped in early trade as a Brexit-related drop in demand affected the company’s hotel and pub sales. 

Speculators again showed interest in the contested NMC Health and the health operator gained over 5% making up for a dip last week. Mining and metal firms were also among the gainers. 

More corporate earnings to set the tone for US session  

There is likely to be some caution in the US market later today as yesterday’s banks earnings provided a mixed set of signals. Goldman Sachs and Bank of America reported declines for the last quarter in contrast to JP Morgan and Citigroup, both of which revealed large increases in fourth quarter revenue. However, the DJIA’s break above 29,000 is likely to trump that and set a positive tone for Wall Street’s session later today. 

Sterling was a touch firmer against the dollar and the euro helped by the stronger UK housing data for December when sales started rising for the first time since May.

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.

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.

Important Notice:

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.