FTSE Higher After Opening Embarrassment for LSE

FTSE gains, after a late open, as trade fears ease.

Trading on the FTSE finally kicked off almost two hours later than usual on Friday. The opening auction started at 09:20 with stocks opening for trading at 09:40, well after the standard 08:00am start in what was the longest glitch since 2011. This is the second glitch in two years, the last one was a year ago saw the FTSE open 1 hour late. There is no hiding from this one, the two-hour delay to open is an embarrassment for LSE and raises plenty of questions over the group’s technology. The timing is pretty horrendous for LSE, just weeks after it sealed a deal to buy Refintiv, in its quest to become a global markets and information powerhouse. LSE’s reputation as one of the most reliable stock exchanges in Europe is starting to be questioned. 

Stocks advance, safe havens decline
At least it was worth the wait and stocks moved higher picking the FTSE up off a 6-month nadir struck in the previous session. Risk appetite showed signs of improving despite no real fundamental change in events. Trump is easing his stance and China has hinted at stimulus to support its slowing economy; these factors combined have resulted in a cautiously risk-on climate for the last day of the trading week. Flows into riskier assets are on the increase whilst the safe haven gold is giving back some gains. 

Protests for another weekend in Hong Kong?
Going into the weekend political unrest in Hong Kong remains a key theme for sentiment. The longer the protests go on for in the financial hub, the greater the expected impact. The GDP for Hong Kong has already been revised downwards to just 1% down from a previous estimate of 2% -3%. Stocks with dealing in Hong Kong such as HSBC and Standard Chartered have already expressed concern over the growing headwinds that the protests are creating. Another weekend of political unrest there could see these stocks open sharply lower on Monday.

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