FTSE lower even as oil prices spike following Saudi attack

Brent crude spiked 20% over the weekend after the facilities of Saudi Arabia’s state oil producer were attacked on Saturday.

Brent crude spiked 20% over the weekend after the facilities of Saudi Arabia’s state oil producer were attacked on Saturday causing the country to temporarily close down as much as 5% of global oil production.

The move was significantly more pronounced because of thin weekend liquidity but volumes have picked up since the London market opened and the price has settled at around $65.60, up 8.9%. More price shocks could be in the offing particularly after President Trump said that the US is locked at loaded, waiting to hear from Saudi Arabia on their views about the party behind the attack.

Not much surprise than that oil and utility companies are rallying in London as is BAE Systems, the UK weapons manufacturer.  Still, overall the FTSE is trading lower, weighed down by investment firms and airlines.

China economic data upsets Asian markets

Asian markets proved equally cautious, upset more by comments from the Chinese Premier than the rally in oil prices. Premier Li Keqiang warned that it will be very difficult for China to grow at 6% or more this year given the current state of the global economy and his predictions were further borne out by the country’s industrial production data which were released later and showed a slowdown to the slowest rate since the early 1990s of only 4.4%, significantly below expectations of 5.2%.  

UK September house prices slip

Brexit turmoil has squeezed UK house sellers into a corner causing prices to slip by a small margin for the first time in nine years.

There is little to support the pound at present and the currency gave up nearly half a percent against the dollar and is weaker 0.36% against the euro this morning.

Please note this product may not be available to trade in all regions.

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