Miners, oil lift FTSE
Fiona Cincotta March 4, 2020 10:07 AM
The FTSE opened with a dip but then proceeded to recover helped with a strong performance from mining firms and oil majors.
The FTSE opened with a dip but then proceeded to recover helped with a strong performance from mining firms and oil majors. Copper, silver and other primary metals all picked up over the last 24 hours while Brent crude bounced back above $52. A surprise rate cut by the Federal Reserve late Tuesday also went some way to reassure markets.
Metal investors are beginning to take the long view that industrial production and demand in China will soon manage to build itself up to the pre-virus level. China is reporting fewer and fewer new cases and more and more operations are returning back to normal.
Airlines, hotels and travel firms remain at the bottom of the FTSE, as does Ashtead following a decline in pretax profits in the third quarter which the company reported yesterday.
Euro dips as virus spreads in Europe
The euro is struggling against the dollar as the spread of the virus in Europe is beginning to intensify. Germany has recorded 37 new cases in the last day and France reacted with 120 school closures.
The spread comes at a time when the German economy is already struggling with the effects of trade tariffs and the pre-virus slowdown in orders from China. The markets are beginning to price in the likelihood of an ECB rate cut next week which will further dampen the euro’s chances of a rally against the dollar.
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.