Chinese data lifts FTSE
Fiona Cincotta March 31, 2020 5:12 AM
Chinese official manufacturing data for March improved boosting recovery hopes
Chinese official manufacturing data for March, the period when Chinese factories started reopening after the worst of the coronavirus and after movement restrictions started gradually being lifted, showed a far better reading than most market watchers hoped for. The reading of 52, up from only 35 in February, has moved above the 50 line which demarcates contraction from expansion. It also provided the light at the end of the tunnel for Europe, now in the full grip of the pandemic, indicating that the economic bounce back post the virus could be relatively quick.
On the FTSE Melrose Industries is trading up nearly 20% followed by tobacco and betting companies. Supermarkets have recently been the flavour of the day and Tuesday they are also trading higher after data showed that panic buying and stocking up before the virus fully has started expanding in the UK increased retailers’ sales by 20%.
But the pound has lost a little bit of ground to the euro and the dollar as traders hold back on buying sterling, expecting that the health situation in the UK will become worse over the next 10 days.
WTI crude recovers after drop to pre 2000 lows
WTI is recovering after flirting with the $20 line, a level not seen since the turning of the millennium, and a level causing President Trump to call on Vladimir Putin to change his sales strategy over the next month. However, with WTI crude hitting various stop loss levels on its way down, technical trading is likely to have more effect in the short term than any fundamental changes.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. 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 warranty 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, author does not guarantee its accuracy or completeness, nor does 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.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.