Sunday, 20th August 2017

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Morning traders' note

FTSE rallies as Brexit talks begin in Brussels

19 Jun 2017, by Henry Croft.

The morning note is a daily global markets overview for Monday 19th June 2017 from the analyst team at Accendo Markets, providing a bullet-point snapshot of what can be expected in financial markets today and overnight activity. The information is straight from the traders’ desks, with news and insights on equities markets, commodities, and forex.

 

FTSE100 currently +50pts at 7515

 

Outperformers:

AHT +2.5%
BRBY +2.0%
SMIN +1.9%
MKS +1.9%

Underperformers:

RRS -1.1%
FRES -1.0%
PSN -0.7%
HIK -0.4%

 

Equities:

·         Indices (FTSE 100, Dax 30, Dow Jones 30) – UK-EU Brexit negotiations begin today in Brussels. Discussions are likely to have significant impact on currencies (Bloomberg)

·         UK Housebuilders (Barratt Developments, Bovis Homes, Persimmon, Taylor Wimpey) – Home sellers in London cut prices by 2.4% in June, its largest drop since 2010 (Bloomberg)

·         Amec Foster Wheeler – Signs equipment contract (Reuters)

·         Avanti Communications – Signs 2-year contract valued at $4.5m (Reuters)

·         Cairn Energy – To receive $104m in India tax dispute (Reuters)

·         Co-Operative Bank – Begins rescue discussions with investors (Reuters)

·         Innovaderma – Believes FY revenue and profit will be far ahead of expectations (Reuters)

·         Workspace – To sell East London development (Reuters)

 

FX/COM

·         Crude oil prices continue to narrow after Baker Hughes Rig Count notches 22nd increase in a row(Reuters)

·         Copper price may have bottomed as Chinese regulators look to clamp down on illegal smelting and encourage direct foreign investment in sector (Reuters)

·         Gold trades fresh 4-week lows having taken a leg lower from the channel floor of a tight trading range at the end of last week (Reuters)

 

Macro outlook:

·         In focus today will be the start of official Brexit negotiations as British and EU diplomats begin the painstaking task of unravelling almost five decades of integration. Nothing ground breaking is expected yet as detailed talks still to come. Today is considered a trust-building exercise, with each side officially tabling demands to kick off an already delayed process while working towards a concrete deadline of March 2019. Any sound bites have potential to keep markets (FTSE, DAX, GBP, EUR) on their toes via foreign exchange movements.

·         The macro docket today is strikingly light with the only release of note being Eurozone Construction Output (10am), looking to avoid a second month of slowing. As a result, speakers will drive this afternoon’s US session with New York Fed Governor Dudley (1pm) likely offering the first dovish insight into stateside monetary policy.

 

CFDs, spreadbetting and FX can result in losses exceeding your initial deposit. They are not suitable for everyone, so please ensure you understand the risks. Seek independent financial advice if necessary. Nothing in this article should be considered a personal recommendation. It does not account for your personal circumstances or appetite for risk.

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