FTSE 100 turns negative for 2017 as snap election is confirmed – Binary Options Daily Review

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Markets Report

Global Markets


Thursday 20th April 2017
Prepared by Barry Jenkins, MarketsWorld Binary Options Analyst

Market Index Closing Level Move on day Intraday Market Range
CAC 5,003.73 + 13.48 4,980.41 – 5,011.33
DAX 12,016.45 + 16.01 12,001.90 – 12,040.20
Dow Jones 20,404.49 – 118.79 20,379.55 – 20,546.69
FTSE 7,114.36 – 33.14 7,114.36 – 7,151.18
IBEX 10,370.30 + 105.80 10,266.00- 10,377.50

Closing Markets Summary

Dow Jones

Stocks in the US closed mainly lower on Wednesday with the Dow Jones closing at its lowest level in two months as International Business Machines Corp. dropped almost 5% after it reported a double-digit drop in profit. IBM is a heavyweight contributor to the Dow and the accounted for 57 points of the days fall. Also weighing was a fall in the price of oil which weighed on energy shares. Seven of the S&P 500’s 11 primary sectors finished lower with financials, which had been the lead gainer earlier in the session, finishing with a 0.3% loss. Morgan Stanley closed up 2% following stronger than forecast earnings, which helped offset the weak read out of Goldman Sachs on Tuesday. Goldman shares ended down 0.7%. Boston Federal Reserve President Eric Rosengren said at Bard College’s Levy Economics Institute that he would like the Fed to start shrinking the balance sheet but at such a gradual rate that it doesn’t disrupt the central bank’s raising of interest rates. Companies that featured included Intuitive Surgical rose 6.4% after the surgical robot maker topped Wall Street forecasts for the quarter. Facebook gained 0.9% a day after the social media company announced a new cameras-based augmented reality platform. BlackRock Inc. the world’s largest money manager, posted increases in revenue, profit and assets under management, however shares fell 1.7%. Yahoo Inc. dropped 1.2% after the internet pioneer posted better than forecast earnings. It also said the planned acquisition of the company by Verizon Communications Inc. is expected to close in June. IBM dropped 4.9% after the tech giant posted weaker than forecast quarterly sales late Tuesday. It was the biggest one-day drop for the company since June, and the decline took the stock to its weakest level since December. The S&P 500 closed down 4.02 points at 2,338.17, the Dow Jones closed down 119.79 points at 20,404.49 to close at the lowest level since early February. The Nasdaq Composite bucked the trend, helped by Intuitive surgical Inc to close up 13.56 points at 5,863.03.


European equity markets closed higher on Wednesday as investors assessed a batch of earnings reports a day after the market suffered its worst session in five months. The Pan-European Stoxx 600 index closed up 0.2% at 377.24 after a fall of 1.1% in the previous session. Economic data showed that the Eurozone’s inflation rate of 1.5% in March was confirmed by Eurostat, a drop from 2% in February. The Eurozone’s trade balance with the rest of the world returned to a surplus in February, of €17.8 billion. Companies that featured included Heineken NV which rose 1.2% as the world’s second-largest brewer by sales posted an 11% rise in net profit for the first quarter and beat forecasts for sales on a strong performance in Europe. Associated British Foods PLC rose 1.3%. The food ingredients producer and owner of retailer Primark raised its dividend and said its outlook for its fiscal 2017 has improved. L’Oreal SA edged up 0.7% after the French cosmetics maker reported an 8% rise in first-quarter revenue, boosted by strong sales in Asia and North America. Zalando SE fell 4.8% as the German online fashion retailer Wednesday said its adjusted first-quarter earnings were around the same level as a year earlier, despite revenue growth. On regional markets the CAC closed up 13.48 point at 5,003.73, the DAX closed up 16.01 points at 12,016.45 and the IBEX closed up 105.80 points at 10,370.30.


The FTSE closed lower on Wednesday as a fall in shares of Shell and for precious metals miners weighed on the top flight index, even as their more UK-focused oil and mining stocks on the second-tier index benefitted from the prospect for looser fiscal policy after the upcoming general elections. Prime Minister Theresa May scored parliamentary approval for her plan to hold a snap general election on June 8, rather than waiting until 2020 as scheduled. The plan, unveiled Tuesday, is seen as a bid to strengthen May’s position in Brexit negotiations with EU officials, as a resounding win would give the government a mandate for its approach. According to analysts at Morgan Stanley, the Prime Minister’s call for snap elections will reduce the risk of a disorderly exit from the European Union because she would now have more power to clinch whatever deals might be needed during the negotiations. Morgan Stanley also expected the Conservative election manifesto to include a focus on housing and infrastructure together alongside indications of a greater willingness to intervene in the economy. That, the investment bank said, pointed to a risk of looser fiscal policy. Companies that featured included Associated British Foods which moved higher after it lifted its dividend and said profits surged in the first half of the year as the sugar business benefited from higher prices and Primark opened 16 new clothes stores across eight countries. Royal Bank of Scotland moved higher after Chancellor Philip Hammond said the government was prepared to sell its stake in the bank at a loss. Royal Dutch Shell and Tullow retreated as oil futures slid following the release of official US inventory data showing a smaller than expected fall in commercial stockpiles of crude in the States, together with an unexpected rise in those of gasoline. Sainsbury moved to the top of the risers board after news broke that Deutsche Bank was now holding more than 5% of the voting rights in the grocer. Burberry fell as it posted a drop in total underlying revenue in the second half as an “exceptional” performance in the UK was offset by efforts to improve brand positioning in the US and in the beauty business. The FTSE closed down 33.14 points at 7,114.36, falling into negative territory for the year.

Economic News Expected Today


Type Period Forecast Previous Importance
Continuing Jobless Claims April 2,020K 2,028K Medium
Initial Jobless Claims April 242K 234K Medium
Jobless Claims 4 Week Avg April   247.25K Low
Philadelphia Fed Manufacturing Index April 25.0 32.8 High
Bloomberg Consumer Confidence April   51.0 Low
CB Leading Index March 0.2% m/m 0.6% m/m Low

Economic News Expected Today

EU  Eurozone

Type Period Forecast Previous Importance
PPI (Germnay) March 0.1% m/m; 3.2% y/y 0.2% m/m; 3.1% y/y Medium
Consumer Confidence (Eurozone) March -4.8 -5.0 Low

Economic News Expected Today

UK United Kingdom

Type Period Forecast Previous Importance
No Data        

Other Global Economic Data Expected


Type Period Forecast Previous Importance
Trade Balance (Japan) March 576bln 813bln Medium

Economic News Round Up MarketsWorld Bars

US mortgage application activity fell last week despite borrowing costs on 30-year home loans falling to their lowest levels since November, the Mortgage Bankers Association reported that its measure on mortgage applications decreased to 1.8 percent to 395.6 in the week ended April 14.

Consumer price inflation in the Eurozone remained unchanged last month, Eurostat reported that Eurozone CPI remained unchanged at a seasonally adjusted annual rate of 1.5%, from 1.5% in the previous month. Eurozone CPI was forecast to remain unchanged at 1.5% last month. Core CPI remained unchanged at a seasonally adjusted annual rate of 0.7%, from 0.7% in the previous month. Eurozone core CPI was forecast to remain unchanged at 0.7% last month.

Forex Round Up MarketsWorld Bars

The Dollar was broadly higher against other major currencies on Wednesday, but gains were capped by ongoing US political uncertainty and geopolitical tensions around the world. Sentiment on the Dollar remained vulnerable as trade talks between the US and Japan gets underway this week, with markets awaiting indications of the direction US trade policy could take under President Donald Trump, who campaigned on a protectionist platform. Heightened tensions around North Korea, which has vowed to conduct more missile tests following Sunday’s failed missile launch, also continued to weigh. US Vice President Mike Pence said on Wednesday that Washington would work with its allies and China to put economic and diplomatic pressure on North Korea.

The EUR/USD was down 0.13% at $1.0718, off a three-week high of $1.0737 hit overnight as investors remained nervous ahead of the first round of the French presidential election on Sunday April 23. The race tightened after a surge in polls for far-left candidate Jean-Luc Melenchon, who wants a referendum on the country’s European Union membership.

The GBP/USD edged down 0.14% to $1.2823 after hitting a six-month peak of $1.2904 on Tuesday, when UK Prime Minister Theresa May on Tuesday called a snap election for June 8th. The British Parliament approved by an overwhelming 522 votes against 13 for May’s call for an early election, setting the stage what will define the terms of the UK’s withdrawal from the European Union.

The USD/JPY rose 0.56% to ¥109.04 and the USD/CHF edged up 0.13% to Fr0.9976. The Australian and New Zealand dollars were both weaker with the AUD/USD down 0.61% at $0.7514 and the NZD/USD was down 0.47% at $0.7010. The USD/CAD was up 0.44% at CAD$1.3442. The US Dollar Index was up 0.22% at 99.62.

Commodity Round Up MarketsWorld Bars

Gold prices were lower on Wednesday as investors had a better appetite for riskier assets, there was some chart consolidation and profit-taking from the shorter-term futures traders in both gold and silver markets after both scored five-month highs earlier this week. June gold was down $10.90 per ounce at $1,283.40. May silver was down $0.077 at $18.195 per ounce.

Crude futures settled lower on Wednesday, as concerns over rising levels of US crude oil production returned, after the Energy Information Administration reported US crude inventories fell less than had been forecast. For the week ending April 12, The Energy Information Administration reported that crude oil inventories fell by 1.034 million barrels compared to forecasts of a draw of 1.470 million barrels. West Texas Intermediate for May delivery fell by $2.05 to settle at $50.44 per barrel, June Brent fell $1.97 to 52.84 per barrel.

The MarketsWorld Overview MarketsWorld Bars

In the US the number of Americans filing new claims for unemployment benefits fell in the week ended April 8th, reaching 234,000. The The four-week moving average of claims declined by 3,000 to 247,250, indicating the slowdown in Mach was only temporary. The number of new claims is expected to reach 242,000 this week. Monitor the Dollar for Binary Options trading.


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The information contained in this publication is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Any opinion offered herein reflects Barry Jenkins’ (MarketsWorld Analyst) current judgment and may change without notice. Users acknowledge and agree to the fact that, by its very nature, any investment in shares, stock options and similar and assimilated products is characterized by a certain degree of uncertainty and that, consequently, any investment of this nature involves risks for which the user is solely responsible and liable. This message is intended for recipient only and not for further distribution without the consent of MarketsWorld.


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Written by Barry Jenkins

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