The FTSE slides after positive open

At the open the FTSE took its cue from the US markets this morning where the Dow Jones is firmly marching towards the 29,000 line and other indexes are also hitting record levels. If the DJIA does close above 29,000 Friday it would mean that it took just over a month for index to gain 1,000 points, one of the fastest runs in the last few years.

The US jobs report Friday is expected to echo the evidence of growth in the US economy and although the pace of hiring may have slowed down slightly in December job creation is likely to have stayed strong, reflecting economic expansion.

However, after a brief spike London shares started sliding, led by retailers and banks, still affected by yesterday’s weak December sales numbers. Airlines are among the top gainers after Ryanair announced its decision to raise its profit guidance because of last-minute Christmas booking. A pullback in oil prices is also helping boost IAG and easyJet.

Sterling recovers from Carney comments

The sterling selloff prompted by dovish comments from the Bank of England’s outgoing governor Mark Carney seems to have bottomed out and the currency is gaining ground again against the dollar and the euro this morning. The latest UK economic indicators published this week are showing that business and retail confidence is on the rise since the December elections which will go some way towards buffering the remaining uncertainty about UK trade deals and the post-Brexit reality.

The information on this web site 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. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex, commodity futures, or digital assets, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to FOREX.com or GAIN Capital refer to StoneX Group Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.

Contracts for Difference (CFDs) are not available to US residents.

FOREX.com is a trading name of GAIN Capital - FOREX.com Canada Limited, 30 Independence Blvd, Suite 300 (3rd floor), Warren, NJ 07059, USA is a member of the Canadian Investment Regulatory Organization and Member of the Canadian Investor Protection Fund. GAIN Capital – FOREX.com Canada Limited is a wholly-owned subsidiary of Stonex Group Inc.

Complaints are taken very seriously at FOREX.com. You can view our complaints procedure here.

Know your advisor