The FTSE remained stubbornly unmoved this Thursday, investors unwilling to push the index towards its all-time highs without good reason.
Arguably, the FTSE does have a cause to be a bit more positive. Brent Crude has spent the morning dancing around $80 per barrel – a fresh 3 and a half year peak – shooting 1% higher on the news that Total (PA:TOTF) is threatening to pull out of its Iran gas field deal. Yet though the black stuff’s rally since early April has played a key part in the FTSE’s own recent rise, investors are proving reticent to buy into this latest commodity move as an excuse to send the UK index to a record high.
As for the pound, despite the inflationary pressures caused by a rise in oil prices, and the subsequent hawkish implications, the currency was as surly as its index peer this Thursday. Against the dollar it sat flat, with cable stuck below $1.35; against the euro it fared a tad better, but even then its 0.1% increase couldn’t carry it above €1.145.
Looking to this afternoon and the Dow Jones is set to dip 35 points after the bell. The Dow hasn’t had much luck in clawing back Tuesday’s trade war-fearing losses, with little on the horizon in the rest of the week – beyond an unforeseen update on the state of play between the US and China – to spark a recovery.
Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved.