FTSE lower as house builders and miners decline
Fiona Cincotta July 5, 2019 10:46 AM
House builders and mining companies are weighing on the FTSE, the latter sliding because of a drop in metals prices over the last few days, the former because of a 0.3% decline in UK house prices in June.
House builders and mining companies are weighing on the FTSE, the latter sliding because of a drop in metals prices over the last few days, the former because of a 0.3% decline in UK house prices in June. However, the case for property companies is actually less negative than investors have anticipated as UK house prices have risen by 5.7% in the last three months compared with same period in 2018.
The FTSE is faring worse than its European peers as shifts in domestic politics and at the helm of the European Commission spell difficulties ahead.
Tories preparing for general election in the autumn?
Of the two candidates for the Tory party leadership Boris Johnson now looks firmly in the lead but if he does take over as the head of the party and becomes Prime Minister it remains to be seen if he – or Jeremy Hunt for that matter – will be able to hold onto this position. MPs from his own party are expecting that there will be a call for a general election once he arrives in Downing Street and they plan to spend the summer preparing for an election possibly as soon as October.
With this much political upheaval there will be no time to actually negotiate a Brexit agreement with the EU before the end of October meaning that the country will be heading for a no-deal Brexit. The pound is sliding lower against the dollar today, but the decline is tempered by expectations that MPs will somehow put the brakes on the no-deal Brexit before it is too late.
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.