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 opens lower on Chinese export data

Article By: ,  Senior Market Analyst
January 14, 2019 4:44 AM
Asian stocks closed lower and European gauges started the week on the back foot following Chinese data showing a 4.4% decline in the country’s exports in December. But a closer look at last year’s numbers shows that the market may have overreacted when reading this as a sign of a deeper trend. China’s December exports are still the third strongest for 2018, they have been steadily increasing since February last year. For the next two months investors should be cautious of how they interpret China’s exports as traditionally these tend to slow down in January and then really plunge in February when the country grinds to a halt for a week during Chinese New Year.

Pound in decline as Brexit vote nears

Brexit temperature is ratcheting up as the Tuesday deadline for the vote on the Prime Minister’s Brexit proposal nears. The currency market doesn’t seem very convinced that the PM will succeed in pushing her deal through, even though she is due to make a last ditch attempt at persuading MPs in a speech Monday afternoon. The pound has lost 0.11% against the dollar and around 0.18% against the common currency in early trade. 

Despite sterling’s Brexit woes the dollar proved not much of an opponent, being sold off after the Federal Reserve indicated last week that it may abandon plans to raise rates this year, or if it doesn’t, to proceed at a much slower pace than initially planned. The Japanese yen benefited from all the turmoil, attracting some safe haven buying, further helped by news of China’s declining exports and gained almost 0.4% against the greenback.

Rio Tinto slips after force majeure

Rio Tinto shares slipped early pulling down several others FTSE listed miners after the company declared force majeure on some of its iron-ore contracts because of a fire at its Australian port. The fire was extinguished quickly enough not to affect production in the long term but nevertheless,  given Rio Tinto’s position as one of the world’s top iron ore exporters, the news was met with a slight selloff.

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