FTSE higher following Asian markets

The markets are having a respite from being battered by negative trade war news and top global indices are moving almost uniformly higher. European stocks started the day on a higher note taking their cue from a rally in Asia and in the US late Wednesday. For the time being the strengthening of the pound is not having any negative effect on FTSE trading, instead company news is grabbing the headlines.

Shares in Rio Tinto rise 1.64%

Rio Tinto, one of the largest global miners, plans to buy back a large portion of its Australia-listed shares before the end of the year. The dual listed Anglo-Australian company made a handsome profit from the sale of its Hail Creek and Valeria coal operations, and Winchester South and Kestrel mines earlier this year and wants to return about $3.2 billion from the proceeds to its shareholders. Rio Tinto will split the buyback into on-market buying of London-based shares and an off-market purchase programme in Australia with full details about the timing and volumes to be provided later in November. Rio Tinto is not the only miner to engage in share buy-backs this year. Raw material prices soared this year and companies like Glencore and BHP are also using their proceeds to buy their shares back.

Rio Tinto’s shares rose in Australian trading almost 3.7% but by the time London opened traded up 1.64%. Shares in other miners were also on the move higher with Antofagasta leading the gainers with a 2.27% rise and BHP Billiton trailing behind with a 0.93% increase.

Alibaba abandons idea of creating jobs in the US

The Sino-US trade war is not only claiming outright lost sales but also a significant amount of good will. Chinese e-commerce conglomerate Alibaba said the company can no longer meet its promise to create 1 million jobs in the US because of the trade dispute between the two countries. Although Alibaba itself never planned to employ any workers in the US the company’s chairman Jack Ma argued that the trading platform would bring 1 million small businesses onto its site and that each of the businesses would have to employ a new person to handle the additional sales. Alibaba’s US listed shares shrugged off the news to trade up 3.77%.

From time to time, StoneX Financial 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.

City Index is a trading name of StoneX Financial Pty Ltd.

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.cityindex.com/en-au/terms-and-policies/.

StoneX Financial Pty Ltd, Suite 28.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.