FTSE rallies, TUI pulls back

The spread of the coronavirus seems to have slowed boosting risk appetite

The spread of the coronavirus seems to have slowed down in the worst affected cities in China with fewer new cases reported than before. This coupled with a strong close in the US helped lift the FTSE, notably miners and airlines.

Other major moves were mainly driven by speculative trade with NMC Health rising 3.19% following a recent approach from a US investment firm and TUI dropping 3.5% as investors took profits off the table following yesterday’s flash rally of 12%. The recently merged Just Eat Takeaway.com also made strides, gaining 2.2%. 

Brent back above $55

OPEC+ may be within a whisker of getting Russia’s approval to cut the production further in order to help support oil prices which have been sliding since the outbreak of the coronavirus. 

A special OPEC committee recommended a cut of 600,000 bbl last week but until now Russia has been reluctant to go along with the proposal. Today Russia’s energy minister said he is studying the proposal and plans to meet with the heads of Russia’s largest oil companies. Brent crude has already bounced to $55.3 this morning and if Russia approves the cuts may rally further.  

Sterling boosted by rail link approval 

After flailing for a few days in the face of Britain’s deteriorating trade setup with Europe and the US the pound staged a comeback this morning, energized by the UK’s potential spending plans. Boris Johnson’s approval of the HS2 high speed rail link between London, Birmingham, Manchester and Leeds has given investors hope that the government is close to approving a stimulus programme that will provide support to the economy and indirectly help the pound.

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.