A breather for the FTSE
March 19, 2020 11:22 AM
The pressure on the FTSE abated for the moment as the index came up for air after the ECB’s approval of a massive €750 bond buying programme. Stocks benefiting the most were those with strong European exposure such as DCC plc, which supplies medical kit and equipment to hospitals and supplies petrol stations with fuel; like other companies in this sector it has benefited the most from the ECB’s decision as the firm operates in a number of European countries. The stock is leading the FTSE risers with a nearly 9% bounce, followed by Coca-Cola HBC.
The pound, however, is in the doldrums despite the Chancellor’s generous aid package earlier this week which investors suspect may not be enough to balance out the damage to the UK economy as the spread of the virus intensifies. With schools in the UK closed from Monday and talk of London going into lockdown this weekend it is clear that for most businesses things will become worse before they get better. Sterling reflected that with a drop to $1.158 against the dollar which is currently holding up as corona has not yet reached its peak in the US.
NYSE to close floor temporarily
The trading day in New York will go all electronic from Monday after two traders were tested positive for COVID-19. The decision should have almost no impact on trading given that the bulk of the transactions are digital already. NYSE is following in the footsteps of the Chicago Mercantile Exchange which also decided to shift to digital-only trading from next week. In London the only remaining floor trading is still happening on the London Metal Exchange but the LME ring will go silent from Monday, also shifting all trade on-line.
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.