FTSE drops, NMC leads the way

Big Iran-related headlines are catching investors’ eyes this morning but they are covering up a slew of company related news that is rocking the FTSE.

Big Iran-related headlines are catching investors’ eyes this morning, but they are covering up a slew of company related news that is rocking the FTSE. 
Abu Dhabi-based hospital operator NMC Healthcare dropped 15% in early trade after two of its main shareholders said last night they would sell around $490 million worth of their holdings in order to reduce their debt.
Airlines and travel operator TUI are losing ground in reaction to another crash of a Boeing plane. The plane operated by Ukrainian Airlines crashed after takeoff just kilometres away from Tehran and although UIA confirmed that it was unrelated to any terrorist action it is too early to tell whether the burden of responsibility here lies with Boeing - as it was a different plane from the grounded 737 Max - or the airline itself. 

Sainsbury reported lower third quarter sales causing shares to slip but the decline was relatively modest at 0.36% in a signal that the overall UK retail confidence may be improving slightly now that the election is over and Brexit is firmly on course. This is also borne out by Halifax’s report that UK house prices rose to a 13-year high in December following a rise in November. 

Oil spikes then eases

Oil prices remain at the mercy of geopolitics and are whipsawing in sync with military action in the Middle East. Brent crude spiked to $70.88 immediately after the Iran strike news but has since given up a large portion of the gains to trade 0.42% higher. The actual threat to supplies from the Middle East seems relatively small at the moment with traffic through the Straits of Hormuz running smoothly.

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