Market News & Analysis

Top Story

FTSE nudges higher

A slight decline in the pound is working in favour of UK exporters this morning but concerns over Brexit are capping a FTSE rally. Among the risers, Pearson’s shares spiked after the company said it would sell its remaining stake in Penguin Random House for £530m while also announcing that the company’s CEO will step down.

Lingering concerns over the gradual weakening of the UK economy – visible in the latest consumer price data out Wednesday – and concerns over Britain’s trade deals after Brexit are holding back house builders and travel and fashion firms.

In Europe, the final decision on the massive Ford-Peugeot tie-up, estimated at $50 billion, is lifting the shares in the two car makers. The merger still has to receive regulatory approval and could run into resistance from Italian and French labour unions over potential job losses.

BoE: Inflation and the next governor

The pound has cooled slightly ahead of the Bank of England’s next rate meeting Thursday but the number of governors calling for a small cut to boost the country’s economy could become louder given that the labour market is cooling and as the country’s inflation rate remains below the Bank’s target of 2%. A decision on who will succeed Mark Carney is also expected shortly with the three front runners including Minouche Shafik, director of the London School of Economics; Andrew Bailey, Financial Conduct Authority chief executive; and Kevin Warsh, a former top official at the US Federal Reserve.

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.