Top Story

FTSE Gains As Global Stimulus Optimism Boosts Risk Apetite

The FTSE followed Asian markets higher on the open as stimulus hopes tempered recession fears. Risk appetite continued to rebound, albeit cautiously following a disastrous week for stocks last week. Riskier assets such as stocks are nudging higher for a second day, whilst safe havens such as gold, the yen and bonds are falling lower.

Sentiment is improving as investors are growing optimistic that central banks across the globe will adopt a more accommodative stance to monetary policy to sure up their economies; economies which are being negatively impacted by the US – Sino trade dispute. 

1. ECB’s Olli Rehn pointed towards more "impactful" monetary policy measures.

2. China unveiled plans to cut corporate borrowing costs.


3. Several central banks have cut interest rates 

4. Eyes are turning towards the Fed Jerome Powell’s speech at the annual central bankers meeting at Jackson Hole, Wyoming on Friday. 

The next move by the market depends on whether Jerome Powell will indicate another slashing of interest rates is on the cards, potentially for September. An indication that more stimulus is around the corner could see risk sentiment pick up further.


FTSE levels to watch:
The FTSE continues to rebound from last week’s 6 month low. Yesterday saw the FTSE rally 1%. Today the FTSE is picking up where it left off. A break through 7245 could open the door to 7305 We are looking for a break through resistance at 7305 to negate the current bearish outlook. 



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.

The markets are moving. Stop missing out.

OPEN AN ACCOUNT