FTSE higher as Europe continues to reopen
Fiona Cincotta April 22, 2020 5:18 AM
The FTSE, like most of the European indexes, is holding up well Wednesday morning, supported by the slow reopening across parts of Europe.
The FTSE, like most of the European indexes, is holding up well Wednesday morning, supported by the slow reopening across parts of Europe. However, mixed earnings and political news may make the rest of the day’s trading more unpredictable.
European leaders are scheduled to meet tomorrow to discuss how to help the region’s economic recovery although comments from the Italian Prime Minister indicate that the summit may not lead to a clear financial deal. The finance necessary to turn around European economy will be eyewateringly high, particularly if Italy’s bank UniCredit is correct in its prediction that the region’s GDP will drop 13% this year. The bank took on a €900 million loan loss provision for the first quarter to balance out the impact of the coronavirus.
Despite UniCredit’s comments FTSE-listed banks are trading mostly in the black as investors bank on UK banks bearing much smaller losses because of the high level of government support.
Building materials group CRH is leading the FTSE gainers with a 3% rally after it reported an increase in first quarter sales despite the onset of the pandemic in the UK in mid-March. Equipment rental group Ashtead and ITV are also among the top gainers.
Partial OPEC = no resolution to the glut
Investors waiting for Russia and Saudi Arabia to resolve the current glut in the oil market may have to wait a long time as both of the countries seem to be waiting for somebody else to cut production first. At Tuesday’s conference call of OPEC+ producers Russia and Saudi Arabia were conspicuously absent with only the smaller producers discussing potential cuts. Oil prices have been crashing for two days now and with no support from producers it is hard to see how the trend will turn.
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.