Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Sterling Unimpressed After Brits' Shopping Splurge

Published 21/02/2016, 12:03
GBP/USD
-
NDX
-
UK100
-
US500
-
DJI
-
AAL
-
CL
-
CCH
-

European markets have progressed from a mixed open to broadly positive in early trading on Friday, helped by a small recovery in the price of oil and taking heart from weekly gains registered across major stock indices in Asia.

Having stalled on Thursday after large gains the previous four days in the context of what has been a very weak market, investors in the FTSE 100 are naturally a little nervous that we’re on the cusp of another panicked sell-off.

A pullback from current levels in UK stocks is a distinct possibility, especially with considerable uncertainty surrounding PM David Cameron’s apparent efforts to defend the interests of the City of London during Brexit negotiations.

UK retail sales rose by 2.3% m/m in January, massively exceeding expectations of a 0.8% after a -1.0% drop in December. Sterling traders, however, were not impressed with the British currency unmoved. The pound is likely to remain depressed until there is some movement in Brexit negotiations - for the good or the bad.

There were no real sectoral leaders on Thursday, with financials, healthcare and technology shifting around atop the leader board. Basic resource stocks are acting as the biggest drag, largely tracking the price of oil. Still, the basic resource sector looks set to finish the week higher, with Anglo American (L:AAL) close to having avoided a weekly drop for the past four weeks.

Coca Cola HBC AG (L:CCH) was top of the UK benchmark after reporting better than expected full-year results.

US markets are expected to open higher with even the Nasdaq looking to open in positive fashion after a 1% decline yesterday, ahead of the release of January inflation data.

USA pre-opening levels
S&P 500: 5 points higher at 1,921
Dow Jones: 20 points higher at 16,433
Nasdaq 100: 7 points higher at 4,158

Original post

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.