FTSE push-pulled by results, trade deal
Fiona Cincotta January 16, 2020 9:08 PM
The London morning session started positively enough with the signing of the US-China trade deal and the Dow Jones Industrial Average breaking above 29,000 both sending a positive signal for UK shares.
The London morning session started positively enough with the signing of the US-China trade deal and the Dow Jones Industrial Average breaking above 29,000 both sending a positive signal for UK shares. But the rally ended up being a bit unconvincing and the index seesawed around the flat line as mixed corporate news kept making the headlines.
Publisher Pearson clocked a 10% drop in its share price after it warned investors that it expects lower profits next year and that the company’s chief financial officer is stepping down later this year. The hardest hit were the firm’s US higher education courseware sales, a segment which makes up a quarter of Pearson’s total revenue.
Hotel group Whitbread also slipped in early trade as a Brexit-related drop in demand affected the company’s hotel and pub sales.
Speculators again showed interest in the contested NMC Health and the health operator gained over 5% making up for a dip last week. Mining and metal firms were also among the gainers.
More corporate earnings to set the tone for US session
There is likely to be some caution in the US market later today as yesterday’s banks earnings provided a mixed set of signals. Goldman Sachs and Bank of America reported declines for the last quarter in contrast to JP Morgan and Citigroup, both of which revealed large increases in fourth quarter revenue. However, the DJIA’s break above 29,000 is likely to trump that and set a positive tone for Wall Street’s session later today.
Sterling was a touch firmer against the dollar and the euro helped by the stronger UK housing data for December when sales started rising for the first time since May.
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.