FTSE slides on mixed bag of results
Fiona Cincotta October 25, 2019 5:15 AM
In what is beginning to look more like a high stakes poker game then legitimate politics the Prime Minister said he would ask MPs to agree on Monday to a general election before Christmas. If they disagree he indicated that he would freeze his Brexit legislation making it impossible for Parliament to make any progress in debating the current proposal. While the stock market had plenty of other issues to keep it occupied including strong results from Barclays and lower production levels at Glencore, currency markets were stunned into inaction with the pound treading water against both the dollar and the euro.
A weaker close on Wall Street also contributed to the FTSE’s decline particularly after Amazon reported the first drop in quarterly profits since 2017 and warned that there would be more declines during its busiest season in the year.
Euro bounces on German IFO data
The euro regained some strength against the dollar after the German IFO Business Climate index remained steady in October rather than continuing to slide. Only a day ago the country’s PMI data showed that German manufacturing is still suffering and is firmly in contraction territory. Investors took the IFO numbers as positive news because while the PMI data is a record of the current situation the IFO number is a forward looking piece of information indicating that businesses are feeling slightly more positive about the outlook over the next few months.
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.