The FTSE was trading up around 32 points in early trading this morning. MicroFocus International was leading a conservative rally in the index, following a big sell off in the shares yesterday. Other early gainers were NMC Health and Centrica, both up over 2% in early trade.
US markets pick up after conciliatory China comments
US markets were cautiously positive overnight, with their biggest one day showing in a fortnight (S&P up 1.27%). All eyes remain firmly on the developments in the Sino-US trade talks. No further reaction from Beijing has been forthcoming to the latest moves by the Trump administration.
Sterling takes a breather as UK opposition seeks debate
In the currency markets, traders were taking a breather after PM Boris Johnson prorogued Parliament earlier in the week. Sterling is currently holding its own against other currencies, but that will be just until further news flows out of Westminster.
Opposition leaders said they would be working over the weekend to develop their next move against a government that is seeking to keep Brexit debate time to an absolute minimum ahead of the UK scheduled exit on 31 October.
It is highly unlikely that Parliament and the increasingly cohesive opposition will roll over quietly, so expect more fireworks next week (the Labour party is already seeking an emergency debate). One strong possibility is a vote of no confidence in the government.
Silver is gathering speed
In the commodities markets silver has been picking up speed and outpacing gold in the last week or so, up 13% in August. This is partly being driven by ETF buying, in turn reflecting interest from investors in the silver market as stock markets look increasingly choppy.
Please note this product may not be available to trade in all regions
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.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX 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), StoneX Financial 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 StoneX Financial 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 StoneX Financial 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.
StoneX Financial 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.