Market News & Analysis


FTSE undecisive as Compass decline drowns out trade optimism

There are sparks of hope about the US-China trade deal phase one. The negotiation chiefs on both sides held phone calls early Tuesday after which Chinese VIce Premier Liu He made comments about having reached some form of consenus. This is closer than the two sides have been to a deal for a couple of months, but this still means that an actual agreement may not be ready before the new year.

Miners were the first to react and Fresnillo gained 3.6% in early trade. Building materials group CRH closely followed suit helped by a trading update showing that its EBITDA jumped 7% on the year.

Still, rather than rising the FTSE ended up deflated, dragged down by a 5.84% decline in Compass group after the company reported a pretax profit decline.

Sterling weakens against dollar, flat against euro

After a brief bounce higher late yesterday sterling plodded overnight only to weaken almost 0.3% this morning. The pre-election to and fro is not doing much for the pound with little new ground being covered by any of the parties. The pound is holding marginally better against the euro, trading almost unchanged against the common currency despite some positive EU economic indicators showing that German consumer confidence is on the rise.

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.