FTSE steady as US China relations deteriorate further
Fiona Cincotta October 9, 2019 10:09 AM
The FTSE is trading higher for the moment as the tensions between the US and China intensify
The FTSE is trading higher for the moment as the tensions between the US and China intensify, but although the markets are for the moment partially ignoring the news flow it is just a matter of time before the implications of the latest set of decisions is felt in actual share price moves.
The US blacklisted 28 Chinese technology firms Monday - including artificial-intelligence companies - over China’s treatment of its Uighur Muslim minority. The US followed this up with visa restrictions against Chinese officials who are believed to be involved and is also now considering restricting the capital flowing into Chinese companies.
On the FTSE, companies focused on the domestic market are gaining ground after the pound firmed up a touch against the dollar - it is trading flat to the euro. ITV, BT and Associated British Foods are among the top gainers.
Sterling is trading higher on very slim hopes that the Prime Minister will be able to bring home some sort of viable Brexit proposal before the 19 October deadline when MPs will have a special sitting to decide the future of Brexit.
The dollar was weaker not only against the pound but also against the euro in reaction to the speech by Fed’s Jay Powell Tuesday who said that the Fed will start expanding its balance sheet again.
Brent crude is hovering just above $58 as the Sino-US tensions take their toll on market expectations of future demand.
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.
Your form is being processed.