Sterling loses more ground as Johnson threatens election
Fiona Cincotta September 3, 2019 10:24 AM
The big story for traders is the fact that MPs return to Westminster today, albeit not for long, before the government prorogues Parliament. Boris Johnson yesterday followed up on his dire warnings to potential rebels in the Tory ranks with the additional message that he will call an election if he the House of Commons turns on him.
Sterling has fallen against all the G10 currencies in the last week, and is down 2.47% versus USD, 1.36% against the CHF and 1.1% against the EUR.
Ferguson shares rise on demerger announcement
The FTSE opened marginally up this morning, led by plumbers merchant Ferguson, which has announced it is de-merging and spinning off a large part of its operations to the US. The decision is subject to shareholder approval and has sparked controversy among some investors, particularly fund managers, some of whom won't be able to hold Ferguson when it lists in the US. Ferguson will continue to trade in the UK under its old Wolseley brand.
US markets poised to respond to new tariffs
The US returns from the Labor Day long weekend today, but S&P 500 and Dow futures are predicting that US equity markets will open down today. The markets there have not had a chance to react to the introduction of 15% tariffs on $112 billion of Chinese goods.
There seems to be no end in sight in the US-China trade negotiations. There is very little news coming out of either Washington or Beijing on the progress of the talks. Economists at UBS have warned that the stand off is starting to have an impact on both the US and global economies.
China, however, seems less affected, with the Caixin China manufacturing index rising above the 50 mark, indicating that the country’s vaunted manufacturing sector is back into expansion mode.
Please note these products may not be available to trade in all regions.
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.