FTSE takes cue from weaker Asian session
Fiona Cincotta February 7, 2020 10:23 AM
A weaker trading session in Asia is spilling into London trading where a meagre offering of corporate news is failing to prop up the market.
Hargreaves Lansdown, NMC Health and mining firms have slipped to the bottom of the FTSE in performance terms while the newly merged Just Eat Takeaway.com is trading up 1.27%.
Coronavirus news is stealing slightly fewer headlines than earlier this week but the spread of the virus continues apace leaving epidemiologists worried that it has yet to reach its peak over the next two months. Among the most affected FTSE stocks is luxury goods firm Burberry which had to temporarily close 24 out of its 64 shops in mainland China. The company’s shares slipped 0.84% .
More worryingly China decided to delay the release of its January trade data which were due out today and will instead publish them together with its February numbers. The coronavirus lockdown started on 23 January, just a day before the country was about to close down for Chinese New Year, and the move could be an attempt to obscure the real impact of the virus even before it became fully public.
Weak German data hits euro
German industrial production dropped month-on-month in December, which is not unexpected given that Germany takes extended Christmas holidays, but more worryingly it also showed a material decline compared with the same month last year, down 6.8%. This combined with yesterday’s factory orders showing the fastest fall in the last ten years is beginning to paint a picture of an economy sliding towards recession, hit by trade wars and Brexit.
Currency traders sold off the euro against both the dollar and the pound. Sterling, on the other hand, is being propped up by stronger housing data showing house prices have risen at the fastest pace in two years.
Disclaimer: GAIN Capital UK Limited (trading as "Forex.com") is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, Forex.com does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by Forex.com or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although Forex.com is not specifically prevented from dealing before providing this material, Forex.com does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
For further details see our full non-independent research disclaimer and quarterly summary.