It’s a sea of red across European stock markets this morning and the FTSE has declined more than 1.2%. Concerns about global trade played a part but in the UK weak GDP numbers added an additional layer of pressure.
As the country gets ready to go to the polls later this week the economy is showing more signs of being drained by Brexit and an overall global slowdown with GDP growth in October rising at the slowest rate in six years. Other economic indicators did not make for much better reading: industrial production dropped 1.3% and construction output shrunk 2.1%.
All this bad news is feeding through into the corporate sector and is evidenced by some poor results on the board today. Ashtead shares plunged 7.7% after the firm said that the UK remains a tough operating environment (although it was more upbeat on the North American market) while Ted Baker cut its earnings guidance and said the company’s CEO had resigned.
Oil rallies post-OPEC
Brent crude is gaining ground in the wake of all the OPEC talks last week and the decision to deepen the cartel’s existing production cuts even though much of it has been only cosmetic. Oil has also managed to shrug off concerns that a trade deal with China may not materialize until some point in 2020. For the moment Brent crude is above $64/bbl and the next serious crunch point may come on 15 December, the day when the US needs to decide whether it will bring in new tariffs on China or only maintain the current ones.
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.