FTSE Higher As Miners, Oil Majors Gain Ground; TUI Bounces Back

FTSE Higher As Miners, Oil Majors Gain Ground; TUI Bounces Back

City Index  | Feb 11, 2019 09:52

Week ahead promises turmoil

The FTSE and other European indexes are higher at the start of the week which promises turmoil as the Brexit situation shows no sign of a solution, the US government potentially heads for another shutdown and the key global trade dispute with China remains unresolved.

Weaker sterling is proving helpful to London blue chips while travel operator Tui (LON:TUIT) is bouncing back from a sell-off late last week. Miners and oil companies are also gaining ground as Brent crude stabilised around $62 following last week’s plunge.

China reopens, US to shut down?

Just as China reopened and settled back into a trading routine after a week long celebration of Lunar New Year the US markets will have to potentially deal with another government shutdown.

Funding for the US government will run out on February 15 and given that the weekend talks between US Democrats and Republicans have failed it is fully possible that US government agencies will be forced into another unpaid holiday from next week.

A resolution to the Sino-US trade talks is also looking less likely despite two top US negotiators heading for Beijing later this week given Trump’s negative comments earlier in February. The negative implications for US stocks are clear, particularly technology stocks, at a time when global economies are already slowing.

UK GDP and the pound

The pound is gently heading lower against the dollar this morning indicating low expectations for UK GDP data that is due to come out later today. But while GDP numbers would have carried reasonable weight in a normal week, now with the Brexit deadline approaching and the likely outcome not being any clearer there is actually little chance for sterling to turn the corner.

Brussels is proving reluctant to engage in any serious renegotiation of the current Brexit proposal while the Labour party is trying to nudge the PM Theresa May in the direction of customs union, one of her red lines.

Though there is a 13 Feb deadline to vote on a Brexit proposal in Parliament there is no compromise deal in sight. Eventually something, or somebody, will have to give, as the deadline of 29 March approaches like a speeding train.

Disclaimer: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient.

Any references to historical price movements or levels is informational based on our analysis and we do not represent or warrant that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, the author does not guarantee its accuracy or completeness, nor does the author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Original post

City Index

Related Articles

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+