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FTSE 100 set to start lower as equities market rally appears to run out of steam

The FTSE 100 is set to start Thursday on the back foot as the heat has evidently fallen quickly out of yesterdays rally.

Spreadbetting firm IG Markets sees Londons blue-chip benchmark down around 18 points, making a price of 6,005 to 6,008 with just over an hour to go until the open.

Wednesday saw positive risk-on sentiments in US stocks, particularly the likes of Amazon, Apple and Microsoft plus the gamut of precious and strategic metal stocks.

Yet sentiment can move like tides, and constant tension between the Trump administration and China doesnt soothe nervousness in financial markets.

“Equity markets in Asia are showing modest gains as the bullish sentiment in the US has gifted sentiment there, but the gains are nowhere near as big posted in the US last night,” said David Madden, analyst at CMC Markets.

“The Trump administration has revoked visas for over 1,000 Chinese students. The moves comes from a national security point of view. It isnt a serious issue on its own, but it adds to the overall sour relationship between the two countries.”

On Wall Street, the Dow Jones closed 439 points or 1.6% higher at 27,940 while the S&P 500 gained 2.01% to finish at 3,398, and the Nasdaq advanced 2.71% to end the session at 11,141.

Japans Nikkei this morning added 158 points or 0.69% to 23,191 and Hong Kongs Hang Seng was up 0.21% to 24,516, whilst the Shanghai Composite was 0.53% higher at 3,271.

In Europe, Thursday afternoon brings the latest ECB rates decision though no changes are expected to either the interest rate or the pandemic emergency purchase programme (PEPP).

Attentions in Europe remain fixed on Brexit terms, or the lack thereof, as the World Trade Organisation (WTO) terms version of a no deal exit looks increasingly likely.

Around the market

Pound: US$1.3001, down 0.01%

Gold: US$1,946 per ounce, up 0.02%

Silver: US$27.09 per ounce, up 0.42%

Brent crude: US$40.79 per barrel, up 2.5%

WTI crude: US$37.90 per barrel, up 3.1%

Bitcoin: US$10,382, up 2.71%

6.45 am: Early Markets: Asia / Australia

Stocks in Asia-Pacific were largely higher today following a bounce back on Wall Street overnight.

Mainland Chinese stocks gained with the Shanghai composite up 0.35% and Hong Kongs Hang Seng index was 0.22% higher.

The Nikkei 225 in Japan rose 0.84% while Australias S&P/ASX 200 is up 0.29% with the tech sector advancing the most.

Proactive Australia news:

MGC Pharmaceuticals Ltd (ASX:MGX) (OTCMKTS:MGCLF) has entered into a financing agreement valued at up to A$15 million with US-based strategic investor Mercer Street Global Opportunity Fund LLC to fund its future growth and accelerate production to drive sales in key markets.

Buru Energy Limited (ASX:BRU) (OTCMKTS:BRNGF) has formed an innovative alliance with Sipa Resources Limited (ASX:SRI) to jointly explore the hydrocarbon and lead/zinc potential of the Barbwire Terrace Project in Western Australias north.

Buru Energy Limited (ASX:BRU) (OTCMKTS:BRNGF) has formed an innovative alliance with Sipa Resources Limited (ASX:SRI) to jointly explore the hydrocarbon and lead/zinc potential of the Barbwire Terrace Project in Western Australias north.

Moho Resources Ltd (ASX:MOH) has secured a diamond rig as it prepares to drill the highly prospective East Sampson Dam gold prospect on Silver Swan North Project in Western Australia.

Comet Resources Limited (ASX:CRL) has invited eligible shareholders to participate in the companys capital raising activities, launchingRead More – Source

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