Market News & Analysis
FTSE slides in thin trade
Fiona Cincotta December 30, 2019 7:30 PM
After a brief respite over Christmas some of the key issues that have plagued the markets are coming back onto the agenda. While the China-US trade talks seem to have made progress the European Union is in a stalemate with the US over tariffs. The EU trade commissioner said Monday he wants discuss to EU/US trade rules when he meets with his US counterpart in January and address contentious issues like US tariffs on European steel and aluminium, cars and a total of $7.5 billion goods imposed over European subsidies for Airbus.
The FTSE see-sawed its way lower during the morning, with retailers, telecoms and oil and metals producers bearing the biggest brunt of the decline. NMC Health, which was at the centre of a contentious report before Christmas, led the risers.
Oil rises after drawdown
The last EIA weekly petroleum report of the year showed a surprise rise in US demand for crude oil as the level of inventories declined by 5.5m bbl. To keep things in perspective, the current level of reserves is still about 2% above the average level for winter and the total amount of crude in stock is now at 441.4m bbl. The report sparked some speculative buying which helped Brent Crude rise 0.48% and make up a sharp drop over the weekend.
Pound returns to strength
The pound has continued to rally and is trading at 1.3120 against the dollar and at 1.1199 against the euro. The currency continues to feed off the higher level of clarity over Brexit following the UK election and although it has slipped slightly from the post-election high it still made a gain of 6.63% over the last week.
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.