The FTSE has opened marginally down this morning, led south by miner Fresnillo and Reckitt Benckiser. Rolls Royce shares are also in the red this morning. Metro Bank was in focus as its shares dropped on news that Fitch had downgraded the bank. Ratings are critical for the profitability of bank and this was not good news for Metro.
Metro Bank shares took a hit last week following its failed £200 million bond offer. Shares sank to 175 on the news and have recovered slightly since the start of this week. A number of activist investors, among them US fund Elliott Advisers, are known to be looking at Metro Bank as a possible turnaround or break up proposition.
Australia cuts rates
The Royal Bank of Australia cut rates to 0.75% which did not surprise analysts but has them worried about how low Australia can now go. RBA Governor Lowe said in his speech that the Australian economy was at a turning point and that further easing was possible. Australia has been seeing some positives, like rising house prices and wage growth, but it seems the RBA was not feeling in positive mood.
Slew of economic data ahead
There is plenty of economic data out today with UK manufacturing data followed by the Eurozone CPI. The US reports its Purchasing Managers Index this afternoon, which will also be closely watched by investors trying to gauge the health of the major economies. Concerns remain about the health of the global economy and whether China and the US are going to start to slow down in tandem.
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.
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.