Market News & Analysis
Retailers rally as Christmas data better than expected
Fiona Cincotta January 10, 2019 6:24 PM
As for most of this week retailers are front and centre on the FTSE 100 this morning after Marks & Spencer and Tesco reported their sales numbers for the last quarter.
Miners pull FTSE index down while retail shares shrug off poor numbers
It has been a mixed bag for UK retailers, with cheaper and budget retailers outperforming mid-range chains. Tesco beat forecasts with its Christmas sales while M&S fell behind, replicating the picture seen earlier this week when Aldi and Asda published higher sales numbers while Sainsbury’s figures disappointed.
Surprisingly this morning all the supermarket shares are trading higher, even M&S, because overall Christmas sales, though lower, proved to be less bad than many investors have feared. Nevertheless the overall index is down 0.5% pulled lower by a hefty fall of shares in Anglo Australian miner BHP Billiton, in turn caused by a Deutsche Bank downgrade.
European indexes lower, French manufacturing declines
Other European gauges are also trading lower in a mixture of negative domestic economic and company news and signs that the Sino-US trade talks were less successful than investors would have liked. The CAC was hit by a slowdown in French industrial production which has unexpectedly declined 1.3% in November, mainly on a slowdown in car manufacturing, machinery, pharmaceuticals and metals. But the French index, like its European peers, was also pulled lower as details begun to emerge from the Sino-US trade talks earlier this week.
The US delegation to the Chinese talks published a long list of outstanding issues that the two sides have not yet agreed on although the Americans did acknowledge that China has agreed to buy more US goods. The way details were released was clearly carried out with one eye on the market, trying to avoid a selloff that typically follows negative news from the US-China trade discussions.
Pound weakens amid no sign of Brexit progress
Sterling is losing ground against the euro and the dollar as the Prime Minister seems to be fighting a losing battle with Parliament over approval of the current Brexit deal. The proposal is due for a vote next week and if it fails the PM will have to come up with an alternative plan within three days after MPs voted to make it harder to have a no-deal Brexit
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.