Market News & Analysis
FTSE toing and froing as future of Brexit deal remains uncertain
Fiona Cincotta October 17, 2019 5:10 PM
The FTSE is trying to work out which way to go this morning as a Brexit deal hangs in the balance. European bourses are even more cautious, trading only a notch above the flat line.
Although the EU and UK negotiators made significant progress in hammering out a workable Brexit deal over the last few days the Northern Ireland unionist party DUP said this morning that it will not back the proposal. The Prime Minister is heading to Europe for a crucial EU summit but whether or not he will be able to sign a deal later in the day remains unclear. The DUP’s rejection sank the pound by 0.5% to $1.2759 after it has been high for most of this week.
Brexit uncertainty is infusing London stock dealings with volatility, as is the lower close on Wall Street caused by some profit warnings and worse than expected economic data. Good Q3 sales growth and predictions of higher income for the full year helped both pest control firm Rentokill and consumer goods maker Unilever climb up the FTSE ranks.
Unilever moved higher after it reported a 2.4% increase in underlying Q3 sales of almost 3% and confirmed that it expects annual growth to be within its previously set multi-year range of between 3-5%.
Brent crude futures are still slipping among concerns over global economic growth and particularly China’s demand over the coming months. Brent futures are only marginally above $59, holding at this psychologically important level.
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.