Top Story

FTSE lacks direction

The FTSE is barely showing signs of life this morning as the weekend plunge in oil prices is pushing and pulling some of the blue chips, notably airlines benefitting from the weaker price and oil producers sliding.

However, as the Brexit news front has gone fairly quiet most other stocks are waiting for a fresh signal of some sort. This signal could come from Wall Street later in the day as Nasdaq and the S&P 500 chalked up some highs on Friday following better than expected GDP numbers. Although economists had pegged US first quarter GDP at around 2.3% the actual rate turned out to be 3.2%, dispelling fears of an imminent economic slowdown in the US.

Trump precipitates another oil price plunge

Both Brent and WTI prices have been on a roll recently after the US made clear it would start implementing its Iran sanctions in a stricter manner from May, which would add to the already existing tightness in the oil market. However, after President Trump called once more for OPEC countries to raise output to prevent prices from moving any higher, the rally came to an abrupt halt and instead Brent crude prices plunged $4 over the weekend.

Euro stable after Spanish elections

The euro firmed very modestly against the dollar and lost slightly to the pound at the start of trade Monday after the general election in Spain was won by the centre-left PSOE party. The outcome was not much of a surprise as most polls showed a PSOE lead ahead of the vote. Sterling is also steady, notching higher against the dollar but almost flat against the euro.

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.