Free Forex masterclass
Kick start your Forex trading. Join our webinar on 30th April.
Market News & Analysis
FTSE still struggles at 7475: Gold drops
Fiona Cincotta April 18, 2019 12:35 AM
After falling on the open, pulled down by Bunzl and the miners, the FTSE climbed higher across the session. A weaker pound and a mixed start on Wall Street lifted the index back towards a 6 month high and resistance at 7475 before falling back to break even.
Miners were under pressure in early trade as concerns over the health of the Chinese economy hit metal prices. BHP also cut its iron ore production guidance in a third quarter trading update. Bunzl was the biggest drag diving 10% in the worst one day decline in three decades, as first quarter sales slowed.
China’s GDP beats estimates
China’s economy grew by 6.4% in the first quarter, retail sales and industrial production data also impressed easing fears over the health of the world’s second largest economy. Yet despite the strong data, investors are nervous that until there is a trade deal between the US and China these levels of growth could be unsustainable.
US Corporate earnings impress
Wall Street opened in a mixed fashion despite the Chinese growth figures and solid US earnings. Morgan Stanley and Pepsico rose after beating forecasts.
Gold hits year to date low
With strong macroeconomic data releases from China and encouraging US corporate earnings demand for safe haven gold declined. Gold slumped to its lowest level since late December at $1273.04.
It's been an ugly few days for gold. We would now expect to see the price consolidate at these levels, before any significant move is either direction appears. Failure at its current levels could bring $1160-40 into play. Near-term resistance can be seen at $1180 and $1185.
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.