A mixed start on Wall Street has helped dig the FTSE off session lows. US stocks were trading broadly higher in early trade on Thursday lifted by gains in tech shares ahead of the key G20 meeting. Boeing (NYSE:BA) was acting as a drag keeping the Dow in the red.
Boeing flies lower
Even as stocks in the broader market moved higher, Boeing opened 1.8% lower. The plane manufacturer is still struggling to clear its name following the two crashes of its 737 Max airplane.
With planes still grounded and now a potential flaw having been discovered in test simulator flights, it’s looking like this issue could drag on for much longer than first anticipated. The findings could be very damaging for Boeing and investors are not wanting to hang onto shares to find out.
Optimism over US – Sino trade lifted stocks on the open, dragging European shares higher. There have been conflicting and confusing reports as to exactly where the two sides stand ahead of the G20 and more importantly a side – line meeting between Trump and Xi Jinping.
The overall sensation in the market is that something positive will come out of this weekend, even if a renewed vow to keep talking. As a result, investors were looking to pick up riskier assets to some degree, but a heavy dose of caution has also been evident across the trading floors.
US economy grows 3.1%
News that the US economy grew 3.1% on an annual basis in the first quarter has been digested and the fact that the dollar remains up on the day versus a basket of currencies indicates that its an acceptable level.
The reality is investors are now far more interested in what is happening in Q2 and how much of a slowdown the US economy is experiencing.
Pound steady amid Bojo Brexit confusion
The pound traded flat versus the dollar as pound traders remain confused over Boris Johnson’s contradicting Brexit comments.
Whilst Boris has said its “do or die” Brexit on 31st October he has also said that he sees the chances of a no deal Brexit as small as a million to one. As Boris Johnson continues to try to be something for everyone pound traders are struggling to comprehend his Brexit strategy.
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