FTSE down but cautious buying in some aerospace stocks

Crypto 1

Melrose industries was leading the risers on the FTSE this morning, up more than 6%, although the index itself opened down. Components manufacturer Melrose was maintained as a buy by analysts yesterday against some other companies in the engineering and aerospace market, like Rolls Royce, which is down 57% for the year.

British Airways owner International Consolidated Airlines (IAG) was also in positive territory this morning, despite having pulled its dividend and with passenger air traffic numbers approaching the virtually non-existent (although air cargo is still busy). BA announced it had reached agreement with unions to furlough nearly all its cabin staff and other employees most exposed to passenger traffic.

Trump goes into bat for the oil price

The oil market remains an area of particular focus and is finely balanced by Saudi Arabia’s desire to keep oil prices low versus the additional downward pressure being exerted by the massive slow down in the global economy. President Trump is obviously keen to protect the domestic US oil industry and is trying to push the Saudis into a deal with Russia. The oil market seems to be taking its lead from the White House at the moment. The oil price, which has seen a spectacular drop from $60 last month is trying to stage rally and claw its way past the $30 mark.

Economic numbers pull down share markets overnight

Many traders are still looking for a V-shaped recovery and a bounce in equity markets, but new economic data like the 6.6m unemployment number releases by the US yesterday has been dampening markets' enthusiasm overnight. Wall Street futures are pointing to a lower open at lunchtime. News of the spread of the virus in Asia has also seen both the ASX and Nikkei drop overnight with the ASX down 1.7%. The FTSE is still down slightly over 1% this morning.

More from UK 100

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.

Open an Account