Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Commodity Stocks Lead London’s Market

Published 22/05/2017, 10:58
EUR/USD
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GBP/USD
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UK100
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XAU/USD
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XAG/USD
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US500
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FCHI
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DJI
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DE40
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BP
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SHEL
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RRS
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GC
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SI
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FRES
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The FTSE 100 is hovering around the 7500 mark as mining companies are forming the foundation of the move higher. Yet again, London’s comparably high exposure to natural resource stocks is setting it apart from the continent.

The bullish run that gold and silver have had recently has pushed higher the share prices of Randgold Resources (LON:RRS) and Fresnillo (LON:FRES).

BP (LON:BP) and Royal Dutch Shell (LON:RDSa) are in demand this morning as the underlying oil market has moved higher, and traders are looking ahead to the OPEC meeting later this week. Saudi Arabia has made it very clear that they are keen to extend the production cut into the first quarter of 2018. They are not alone in wanting to keep oil production curtailed and traders are all too aware of this.

The DAX and the CAC are both flickering in-between positive and negative territory, and it is clear that volatility is low in both indices.

The EUR/USD and GBP/USD are creeping lower this morning as the greenback is bouncing back. The US dollar has popped higher this morning after a sever sell-off last week, in which the currency dropped to its lowest level against a basket of currencies since November. The panic surrounding Mr Trump’s latest scandal has seemed to cool slightly, but the story has not gone away completely.

In the US, we are expecting the Dow Jones to open 20 points higher at 20,824, and we are anticipating the S&P 500 to open at 2383, which is 2 points higher than Friday’s close.

There are no major US companies reporting figures today, but Fed member’s Patrick Harker and Neel Kashkari are speaking at 3pm and 3.30pm respectively.

Disclaimer: CMC Markets is an execution only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person

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