Virus and Davos set the tone for the day
Fiona Cincotta January 21, 2020 5:21 AM
The FTSE plunged more than 1% after opening as China was hit with a SARS-like virus just days before the start of the Chinese New Year. Chinese and Hong Kong shares dropped 1.7% and 2.8%, respectively, on fears that the virus will spread quickly over the coming days when vast numbers of Chinese will travel for annual festivities. In London luxury brands and travel stocks came under most pressure, closely followed by mining shares as China is the world’s biggest buyer of metals.
One ray of light came from budget airline easyJet which bounced up 4.8% after it upped its guidance on first half revenue. The company reported passenger revenue numbers exceeding expectations.
The start of the World Economic Forum in Davos today could throw up some interesting headlines as President Trump is due to address the forum in the course of the morning. Climate change will no doubt be one of the top issues on the agenda as environmental campaigners are lining up protests throughout this week.
Unemployment data lifts sterling
The pound ticked back up above the $1.3 mark, helped by a slight improvement in UK employment in the three months to November. The numbers today together with the latest improvement in the housing market mean that although the Bank of England started shifting towards cutting rates at the end of this month it may end up holding back on this decision until later this year.
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.