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FTSE Up Marginally As UK Mulls Constitutional Crisis

By City Index (Fiona Cincotta)ETFsAug 30, 2019 10:11
FTSE Up Marginally As UK Mulls Constitutional Crisis
By City Index (Fiona Cincotta)   |  Aug 30, 2019 10:11
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The FTSE was trading up around 32 points in early trading this morning. MicroFocus International was leading a conservative rally in the index, following a big sell off in the shares yesterday. Other early gainers were NMC Health and Centrica (LON:CNA), both up over 2% in early trade.

Micro Focus (LON:MCRO), described by one analyst as a retirement home for ageing software, has claimed to be suffering the early impact on uncertainty in the UK economy, as firms delay software buying decisions.

US markets pick up after conciliatory China comments

US markets were cautiously positive overnight, with their biggest one day showing in a fortnight (S&P up 1.27%), as all eyes remain firmly on the developments in the Sino-US trade talks. No further reaction from Beijing has been forthcoming to the latest moves by the Trump administration, but that may just be because China is mulling its next play.

Gao Feng, spokesman for China’s Commerce Ministry, said yesterday he hoped that the US would cancel an additional tariffs and avoid further escalation of the trade war. China’s currency, the renminbi, has been dropping in August as the economy starts to feel the effects of the ongoing spat.

Sterling takes a breather as UK opposition seeks debate

In the currency markets, again traders were taking a breather after PM Boris Johnson prorogued Parliament earlier in the week. Sterling is currently holding its own against other currencies, but that will be just until further news flows out of Westminster.

Opposition leaders said they would be working over the weekend to develop their next move against a government that is seeking to keep Brexit debate time to an absolute minimum ahead of the UK scheduled exit on 31 October.

It is highly unlikely that Parliament and the increasingly cohesive opposition will roll over quietly, so expect more fireworks next week (the Labour party is already seeking an emergency debate). One strong possibility is a vote of no confidence in the government, the nuclear option which will trigger a general election.

Sterling lost some ground against JPY and USD in the last 24 hours, but made up 0.11% against the EUR.

Silver is picking up speed

In the commodities markets silver has been picking up speed and outpacing gold in the last week or so, up 13% in August. This is partly being driven by ETF buying, in turn reflecting interest from investors in the silver market as stock markets look increasingly choppy.

Disclaimer: 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 are informational based on our analysis and we do not represent or warrant 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, the author does not guarantee its accuracy or completeness, nor does the 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.

FTSE Up Marginally As UK Mulls Constitutional Crisis

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FTSE Up Marginally As UK Mulls Constitutional Crisis

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