NMC Health sliding again drags FTSE

A move by China’s central bank to prop up the economy dented by the spread of the coronavirus has helped to assuage some investors' concerns in Europe, lifting the FTSE and other European gauges

A move by China’s central bank to prop up the economy dented by the spread of the coronavirus has helped to assuage some investors' concerns in Europe, lifting the FTSE and other European gauges. Banks and China-facing stocks such as miners and airlines led the FTSE rally, helped by news that the rise in the number of new virus cases slowed down over the weekend.

The day ahead is likely to be quieter than usual as the US remains closed for President’s Day and some of the key economic releases are due only later this week.  

On the FTSE, the embattled NMC Health is sliding again this morning after the drain from its board continued over admissions of dubious shareholdings. The company’s co-chairman BR Shetty and director Abdulrahman Basaddiq stepped down over the weekend following questions over the group’s ownership. But the storm over NMC Health may be not far from settling, a view echoed by investors as the buy requests on the share started to pick up.

Euro picks up, pound struggles

The euro bounced back from last week’s 2% drop and is trading up 0.14% this morning ahead of the German ZEW economic sentiment data tomorrow. The weakness in the German economy has been the main reason for the euro’s recent slide and tomorrow’s numbers may not offer much of a reprieve. Sterling is also struggling to hold its ground against the dollar, particularly after negative comments from France over the weekend about the prospects of the EU/UK trade talks

Brent crude is also sliding again after a brief moment of optimism over the weekend to trade down 0.16%. The long term effects of the coronavirus have yet to fully become apparent, including for China’s oil consumption, leading to plenty of uncertainty among oil trraders.

Related Articles

Disclaimer

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.

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.