M & G crisis weighs on FTSE
Fiona Cincotta December 5, 2019 10:26 AM
The FTSE is yo-yoing this morning, weighed down by losses at M&G, Evraz and utility companies.
The FTSE is yo-yoing this morning, weighed down by losses at M&G, Evraz and utility companies. M&G's property fund, which owns numerous shopping centres across the UK, pulled the brakes on investor withdrawals after sustained Brexit-related outflows. The company said it wasn’t able to sell property fast enough in the current market to fund the withdrawals.
Pound marches on
Although the UK election news flow has been somewhat subdued over the last few days, giving way to the NATO summit, the pound has still quietly rallied throughout the week on expectations of a comfortable Conservative win. The trend continued this morning with sterling gaining another 0.27% against the dollar and 0.1% against the euro. Going into the election week investors seem to be positioning themselves for a further move higher.
Oil rallies ahead of OPEC, Aramco
A big day for oil today as OPEC and Russia meet in Vienna to discuss production cuts and Saudi Arabia Aramco publishes its final IPO price. Talk on the sidelines of the Vienna meeting is indicating that OPEC will not only look to extend existing production restrictions but will look to introduce further ones in the region of 400,000 bbl a day. The pressure to cut is not surprising given that state-owned Aramco is expected to price its shares at the high end of the indicative range of $8-$8.53, which will force Saudi Arabia’s hand in terms of what kind of oil price it needs to keep the shares on an upward trajectory. Brent hit $63.36 overnight, also helped by a surprise inventory drawdown in the US.
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.