FTSE push-pulled by results, trade deal
Fiona Cincotta January 16, 2020 10:08 AM
The London morning session started positively enough with the signing of the US-China trade deal and the Dow Jones Industrial Average breaking above 29,000 both sending a positive signal for UK shares.
The London morning session started positively enough with the signing of the US-China trade deal and the Dow Jones Industrial Average breaking above 29,000 both sending a positive signal for UK shares. But the rally ended up being a bit unconvincing and the index seesawed around the flat line as mixed corporate news kept making the headlines.
Publisher Pearson clocked a 10% drop in its share price after it warned investors that it expects lower profits next year and that the company’s chief financial officer is stepping down later this year. The hardest hit were the firm’s US higher education courseware sales, a segment which makes up a quarter of Pearson’s total revenue.
Hotel group Whitbread also slipped in early trade as a Brexit-related drop in demand affected the company’s hotel and pub sales.
Speculators again showed interest in the contested NMC Health and the health operator gained over 5% making up for a dip last week. Mining and metal firms were also among the gainers.
More corporate earnings to set the tone for US session
There is likely to be some caution in the US market later today as yesterday’s banks earnings provided a mixed set of signals. Goldman Sachs and Bank of America reported declines for the last quarter in contrast to JP Morgan and Citigroup, both of which revealed large increases in fourth quarter revenue. However, the DJIA’s break above 29,000 is likely to trump that and set a positive tone for Wall Street’s session later today.
Sterling was a touch firmer against the dollar and the euro helped by the stronger UK housing data for December when sales started rising for the first time since May.
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.