FTSE trades lower ignoring leads from US

The FTSE opened in positive territory, taking the lead from the US, which saw another round of record closes. US tech stocks led the rally in the US on news that Apple will repatriate billions of dollars for tax purposes. The assumption being that other US tech stocks will follow suit to avoid tax penalties. Like or dislike Trump, his aim to repatriate billions of dollars appears to be working.

The FTSE’s push northwards was short lived, as positivity is proving harder to come by in the UK than the rest of Europe. The FTSE is in its fourth consecutive negative session, mainland Europe bounded higher. Not even some encouraging corporate updates were enough to keep demand for the FTSE higher.

Costa Higher on break up hopes

Costa Coffee and Premier Inn owner Whitbred is trading up 3% following its trading update, surprising given the update wasn’t so inspiring. The chain said sales growth had stalled, blaming slowing consumer confidence. Like for like sales dropped 0.1% at Costa. The high street and retailer’s performance has very much been in focus over the past few weeks, what we are seeing at Costa is the falling footfall on the high street impact on like for like sales. The rally in Whitbred share price is probably less to do with their performance and more to do with the renewed calls to spin off Costa from the other businesses.

Royal Mail Lower Despite Revenue Rise

There was enough to like about Royal Mail’s trading update this morning, however investors opted to sell out on the release and the share dropped 1%. Firstly, Royal Mail posted 2% revenue rises for the first nine months of the year, thanks mainly to impressive parcel volumes in Europe. GLS, the International arm saw a 10% rise in volume and revenue, meanwhile letter performance declined less than expected. There were no nasty surprises, only unsurprising evidence that the international arm is where the strength is at for Royal Mail, an area where we expect the firm to focus growth and acquisitions going forward.

Quiet Economic calendar

The economic calendar for the UK and the eurozone offers nothing for traders to pick up on. This afternoon, releases from the US in the form of housing starts and jobless claims, could offer some fresh direction to the dollar.

Dollar sell off continues

The dollar is once again trading lower on Wednesday versus a basket of currencies as it has been unable to maintain the boost from the previous session. Last night even Fed doves were sounding hawkish on the buck, with Evans and Kaplan both pointing to 3 rate rises this year.

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.cityindex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.

ALL TRADING INVOLVES RISKS. LOSSES CAN EXCEED DEPOSITS.

City Index is a trading name of StoneX Financial Pte. Ltd. (“SFP”) for the offering of dealing services in Contracts for Differences (“CFD”). SFP holds a Capital Markets Services Licence issued by the Monetary Authority of Singapore for Dealing in Exchange-Traded Derivatives Contracts, Over-the-Counter Derivatives Contracts, and Spot Foreign Exchange Contracts for the Purposes of Leveraged Foreign Exchange Trading. SFP is also both Derivatives Trading and Clearing member of the Singapore Exchange (“SGX”). SFP is a wholly-owned subsidiary of StoneX Group Inc.

The information provided herein is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to invest, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk.

The information does not represent an offer of, or solicitation for, a transaction in any investment product. Any views and opinions expressed may be changed without an update. To understand the risks and costs involved, please visit the section captioned “Important Information” and the “Risk Disclosure Statement”.

The information herein is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.

StoneX Financial Pte. Ltd. 1 Raffles Place, #18-61, One Raffles Place Tower 2, Singapore 048616. Tel: 6309 1000. Co. Reg. No.: 201130598R.

This advertisement has not been reviewed by the Monetary Authority of Singapore.