The FTSE is barely changed at the start of the week, shrugging off gains in Asian stock markets and mostly tracking the pound’s flat trading. Asian markets initially dipped on weaker Chinese GDP data but perked up by the end of the session.
Apart from IT firm Micro Focus International (LON:MCRO) most of the FTSE 100 losses are concentrated in the house building sector and among banks and insurers. Miners are holding the side up after overnight gains in gold, silver and copper prices. However, it has not been a good morning for FTSE 250-listed Sports Direct (LON:SPD) which plunged 15% after the company decided to delay the release of its results, arguing that the integration of the House of Fraser has slowed down the accounting process.
Big banks will kick off the US earnings season later today with Citigroup (NYSE:C) due to report on Monday and JP Morgan Chase (NYSE:JPM), Goldman Sachs (NYSE:GS) and Wells Fargo (NYSE:WFC) following on Tuesday. Investors will have plenty to look at this week as the tech giants Netflix (NASDAQ:NFLX), Facebook (NASDAQ:FB), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Google (NASDAQ:GOOGL) and Apple (NASDAQ:AAPL) are also due to release.
The pound is in a limbo, waiting for some more clarity on the political front and on Brexit. Conservative Party members have until this Sunday to cast their vote on Johnson versus Hunt with the final tally due to be released on 23 July. But the tea leaves are not looking good for the pound as the currency has been declining for the last ten weeks straight.
Oil prices are also stagnant after tropical storm Barry blew over with far less damage than expected and production in the Gulf of Mexico is getting back to normal. However, it is too early for oil investors to relax as tensions in the other Gulf are still on the simmer
"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."