CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

FTSE lower but European indexes remain strong ahead of ECB meeting

Article By: ,  Senior Market Analyst
January 24, 2019 4:40 AM
The FTSE is edging lower this morning but European indexes all look in good shape ahead of the ECB’s meeting later today. There is little expected on the rate front: the Eurozone’s central bank is expected to leave rates unchanged not only this month but most likely until September. However, what will attract more attention will be the bank’s comments about the growing risks to the region’s economy. 

The bank’s President Mario Draghi recently said that slowing global demand was affecting the Eurozone’s growth but that the ECB’s accommodative monetary policy, which had been in place until the end of December, had helped keep domestic demand high.

Shrinking German manufacturing weighs on euro

This morning’s German PMI data was a mixed bag, showing growth in services but a manufacturing sector that is beginning to shrink, not good news for the euro. The common currency lost some ground against the dollar but barely changed against the pound as sterling remains under its own set of Brexit-related pressures. The dollar was the strongest among the main currencies this morning but even here the rise was subdued as the US government shutdown and the protracted US-China trade dispute is eroding any gains.

Venezuela and the oil price

Brent crude and WTI prices are a notch lower this morning but this may not remain the case, particularly for the US-traded WTI as OPEC-member Venezuela is currently imploding. The country’s opposition leader Juan Guaidao has declared himself interim president after an election won allegedly fraudulently by previous president leftist Nicolas Maduro. 

The friction could lead to a temporary slowdown in Venezuela’s oil exports after Maduro broke off diplomatic relations with the US and gave US diplomats 72 hours to leave the country. 

US refineries depend on Venezuela’s heavy crude and will have difficulty replacing it with alternatives, which would typically be Canadian and Mexican crude that is less available and higher cost.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024