Market News & Analysis

FTSE weakens on China threat

Instead of the conciliatory tone on China trade talks that the market has been hoping for President Trump opted for the tougher approach in his comments yesterday, threatening to increase tariffs if the current round of Sino-US negotiations doesn’t produce some sort of an interim agreement. The Chinese delegation has been pushing for a rollback in tariffs and recently said that the US side had agreed to it, something US negotiators and Trump have denied. Now the two sides are back at loggerheads and investors’ sentiment is sinking.

Coca Cola shoots up as pre-Christmas revenues rise

The FTSE is nearly half a point lower – and sliding - with ITV,  insurers and miners all trading lower, the latter hardest hit by China comments. ITV saw some profits being taken off the table after yesterday’s post-trading update rally while trade tensions and the escalation of riots in Hong Kong put HSBC and other major banks under pressure. 

Coca Cola provided a rare bit of counterbalance, shooting to the top of the index after reporting a solid quarterly increase in revenue. Sales in the fourth quarter have already started accelerating ahead of the busy pre-Christmas period.

Sterling firms against euro   

Sterling is trading in synch with election news, rising against the euro after polls showed that the Conservatives have increased their lead over Labour in the last three days. The pound is reacting the most to the prospect of a simple majority and a stable government and any news pointing to a hung parliament is causing more volatility. The pound dipped against the dollar in early trade but has since recovered slightly.


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 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.