FTSE takes cue from weaker Asian session
Fiona Cincotta February 7, 2020 10:23 AM
A weaker trading session in Asia is spilling into London trading where a meagre offering of corporate news is failing to prop up the marke
A weaker trading session in Asia is spilling into London trading where a meagre offering of corporate news is failing to prop up the market.
Hargreaves Lansdown, NMC Health and mining firms have slipped to the bottom of the FTSE in performance terms while the newly merged Just Eat Takeaway.com is trading up 1.27%.
Coronavirus news is stealing slightly fewer headlines than earlier this week but the spread of the virus continues apace leaving epidemiologists worried that it has yet to reach its peak over the next two months. Among the most affected FTSE stocks is luxury goods firm Burberry which had to temporarily close 24 out of its 64 shops in mainland China. The company’s shares slipped 0.84% .
More worryingly China decided to delay the release of its January trade data which were due out today and will instead publish them together with its February numbers. The coronavirus lockdown started on 23 January, just a day before the country was about to close down for Chinese New Year, and the move could be an attempt to obscure the real impact of the virus even before it became fully public.
Weak German data hits euro
German industrial production dropped month-on-month in December, which is not unexpected given that Germany takes extended Christmas holidays, but more worryingly it also showed a material decline compared with the same month last year, down 6.8%. This combined with yesterday’s factory orders showing the fastest fall in the last ten years is beginning to paint a picture of an economy sliding towards recession, hit by trade wars and Brexit.
Currency traders sold off the euro against both the dollar and the pound. Sterling, on the other hand, is being propped up by stronger housing data showing house prices have risen at the fastest pace in two years.
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.