FTSE lower DAX recovers from bank break up
Corporate news weighed heavily on the FTSE this morning with a mixture of results, negative profit guidances and investigation news dragging the index down.
Share this:
Corporate news weighed heavily on the FTSE this morning with a mixture of results, negative profit guidances and investigation news dragging the index down. Top of the list was the significantly lower profits at the Royal Bank of Scotland which caused a prompt selloff and a 5.3% decline in the bank’s shares. The worst hit was the bank’s mortgage lending where borrowers' appetite for big ticket purchases has been dampened by Brexit. Just Eat, on the other hand, blamed warm weather in February and a later Easter for a decline in orders in the same quarter.
Surprisingly the DAX is trading higher despite a slide in Deutsche Bank a day after a major tie-up with Commerzbank fell through. On Friday the bank reported an increase in net profits but income at its bond trading division - which makes up more than half of the group’s income - dropped nearly 19% on the quarter.
US GDP numbers to dominate dollar trading
Dollar traders are positioning themselves for a set of strong US GDP data, due to be released later today, and are nudging the dollar higher towards the peak levels of this year. The number will provide some clarity over increasingly confusing US economic data, which shows continued strength in some parts of the economy, but also the first warning signals of a potential slowdown in others.
The pound has recovered from yesterday’s plunge against the dollar and is trading in positive territory but the progress is fairly slim. Brexit headlines have thinned out compared with March but the fundamental lack of clarity about what comes next is keeping sterling low, just shy of $1.290.
Surprisingly the DAX is trading higher despite a slide in Deutsche Bank a day after a major tie-up with Commerzbank fell through. On Friday the bank reported an increase in net profits but income at its bond trading division - which makes up more than half of the group’s income - dropped nearly 19% on the quarter.
US GDP numbers to dominate dollar trading
Dollar traders are positioning themselves for a set of strong US GDP data, due to be released later today, and are nudging the dollar higher towards the peak levels of this year. The number will provide some clarity over increasingly confusing US economic data, which shows continued strength in some parts of the economy, but also the first warning signals of a potential slowdown in others.
The pound has recovered from yesterday’s plunge against the dollar and is trading in positive territory but the progress is fairly slim. Brexit headlines have thinned out compared with March but the fundamental lack of clarity about what comes next is keeping sterling low, just shy of $1.290.
Related tags:
Latest market news
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Oil Shock Hits Bond Yields and Squeezes the Consumer
U.S. 10-year and 30-year bond yields have moved higher as markets reopen after the Labor Day weekend, with the producer price index and the consumer price index landing within days of each other. The European Central Bank decision sits between them, where the economic projections and Christine Lagarde's press conference carry more market risk than the rate move itself. The DAX has also broken below its 21-day exponential moving average, a sign that momentum beneath a resilient index is starting to fade.
DAX, Crude oil forecast: Rising energy prices, yields threaten risk assets
Following a weak handover from Asia, European markets and US indices were under pressure this morning, as rising oil prices and elevated bond yields once again weighed on risk appetite. Among the major European indices, the German DAX will be in firm focus this week, with the ECB’s rate decision coming up on Thursday. That decision is likely to be a hike, as rising oil prices threaten to re-accelerate inflation.
German DAX Records Meet a Treasury Market Under Strain
The German DAX record high is back in reach after four straight higher sessions, helped by cheaper energy and resilient eurozone data.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.