NMC Health sliding again drags FTSE

A move by China’s central bank to prop up the economy dented by the spread of the coronavirus has helped to assuage some investors' concerns in Europe, lifting the FTSE and other European gauges

A move by China’s central bank to prop up the economy dented by the spread of the coronavirus has helped to assuage some investors' concerns in Europe, lifting the FTSE and other European gauges. Banks and China-facing stocks such as miners and airlines led the FTSE rally, helped by news that the rise in the number of new virus cases slowed down over the weekend.

The day ahead is likely to be quieter than usual as the US remains closed for President’s Day and some of the key economic releases are due only later this week.  

On the FTSE, the embattled NMC Health is sliding again this morning after the drain from its board continued over admissions of dubious shareholdings. The company’s co-chairman BR Shetty and director Abdulrahman Basaddiq stepped down over the weekend following questions over the group’s ownership. But the storm over NMC Health may be not far from settling, a view echoed by investors as the buy requests on the share started to pick up.

Euro picks up, pound struggles

The euro bounced back from last week’s 2% drop and is trading up 0.14% this morning ahead of the German ZEW economic sentiment data tomorrow. The weakness in the German economy has been the main reason for the euro’s recent slide and tomorrow’s numbers may not offer much of a reprieve. Sterling is also struggling to hold its ground against the dollar, particularly after negative comments from France over the weekend about the prospects of the EU/UK trade talks

Brent crude is also sliding again after a brief moment of optimism over the weekend to trade down 0.16%. The long term effects of the coronavirus have yet to fully become apparent, including for China’s oil consumption, leading to plenty of uncertainty among oil trraders.

Related Articles

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.