Political uncertainties way on FTSE 100 – Binary Options Daily Review

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Markets Report

Global Markets


Tuesday 14th November 2017
Prepared by Barry Jenkins, MarketsWorld Binary Options Analyst

Market Index Closing Level Move on day Intraday Market Range
CAC 5,341.63 – 39.09 5,301.02 – 5,384.76
DAX 13,074.42 – 53.05 12,960.70 – 13,163.90
Dow Jones 23,439.70 + 17.49 23,343.34 – 23,461.68
FTSE 7,415.18 – 17.81 7,402.95 – 7,469.30
IBEX 10,049.90 – 42.80 9,984.20 – 10,124.00

Closing Markets Summary

Dow Jones

Stocks in the U.S. closed slightly higher on Monday, however any gains were capped on continuing concerns surrounding the Republican tax legislation and a fall in General Electric Co. tumbled to a more-than-five-year low. In a speech on Sunday Philadelphia Fed President Patrick Harker pulled back slightly in his support for a December interest-rate hike. With no Federal Reserve officials speaking on Monday, but on Tuesday, departing Fed Chairwoman Janet Yellen is due to take part in a panel discussion with heads of other major central banks. Companies that featured included GE which fell 7.2% after announcing that it plans to cut its dividend by half, with the conglomerate saying the move will help its effort to drive up growth and value for shareholders. Mattel Inc. rose 21% in the wake of a report late Friday that rival toy maker Hasbro Inc. has made a takeover offer, Hasbro was up nearly 5.9%. Tyson Foods Inc. rose 2% after the company posted better than forecast quarterly profit and revenue. Boeing Co. rose 0.6% after the aerospace giant scored a $15 billion deal with Emirates Airline. GGP Inc. rose 8.3% as Brookfield Property Partners LP has made a $14.8 billion offer to acquire the shares of the mall owner that it doesn’t already own, Brookfield fell 5%. Valeant Pharmaceuticals International Inc. dropped 5.1% after it said it was launching a private offering of $750 million worth of notes due 2025, paying 5.5%. The drugmaker plans to use the proceeds from the debt offering to repay a portion of term loan facilities due 2022. The S&P 500 closed up 2.54 points at 2,584.84. The Dow Jones closed up 17.49 points at 23,439.70. The Nasdaq Composite closed up 6.66 points at 6,757.60.


European equity markets closed lower on Monday for a fifth straight session, after French utility Electricite de France SA issued a profit warning, and on continued concerns about Brexit weighing on growth prospects for the euro zone. The pan-European Stoxx Europe 600 closed down 0.7% at 386.13 for its lowest close since Sept. 27th. The euro was down 0.038% against the dollar at 1.1657, down slightly from 1.1665 late Friday in New York. Against the pound, the euro was up 0.60% at 0.8901, up from 0.8843 on Friday. The pound was lower against the dollar, the euro and other currencies after The Sunday Times reported that 40 lawmakers in the British parliament had agreed to sign a letter of no confidence in Prime Minister Theresa May. That’s just eight less than the required number to start a formal leadership challenge, according to the report. May’s troubles on the domestic front are making it more difficult for her to fortify the U.K.’s hand in Brexit talks with the European Union. There was also continued uncertainty surrounding prospects for Republican lawmakers in the U.S. to pass tax cuts and other reforms into law by the end of this year, financial shares were among the worst performing in Europe, likely because of worries about tax reform, said Brooks. Companies that featured included EDF which fell 10% after the company cut its 2018 Ebitda target to a range of €14.6 billion to €15.3 billion, compared with a previous forecast of at least €15.2 billion. EDF said it faces “unfavourable developments” in France and the U.K. Sonova Holding AG fell 2.4% after the hearing aid producer said first-half sales came in at 1.25 billion Swiss francs, which was below forecasts of 1.29 billion francs. Coca-Cola HBC fell 4.5% after the bottler’s rating was cut to neutral from overweight at J.P. Morgan Cazenove. On regional markets the French CAC closed down 39.09 points at 5,341.63, the German DAX closed down 53.05 points at 13,074.42 and the Spanish IBEX closed down 42.80 points at 10,049.90.


The FTSE 100 reversed earlier session gains to close lower on Monday amid a new wave of political uncertainty. The pound was off 0.8% against the dollar at 1.3097 and 0.64% lower versus the euro at 1.1236. Sterling came under pressure amid growing political uncertainty, as it emerged that as many as 40 Conservative MPs were preparing to sign a letter of no confidence in Prime Minister Theresa May ahead of a crucial round of Brexit negotiations. It would take just eight more MPs to put their name down to reach the 48 required to trigger an official vote which could lead to a new leadership contest. Companies that featured included Rentokil Initial which was little changed after saying it has acquired North America’s largest provider of mosquito control services, Vector Disease Acquisition, for an undisclosed consideration. The company also lifted its mergers and acquisitions pipeline guidance for the second half to $100m, saying prospects for further purchases remained “very strong”. Vodafone edged lower as it announced that its India operation and Idea Cellular have separately agreed to sell their respective standalone tower businesses in India to ATC Telecom Infrastructure for an aggregate enterprise value of INR 78.5bn. Ladbrokes Coral moved despite posting a 3% rise in net revenue. Coca-Cola HBC was under the cosh after a downgrade to neutral at JPMorgan. Aggreko edged up as it announced the appointment of Heath Drewett as its chief financial officer, replacing Carole Cran. Aggreko also benefited from an upgrade to ‘buy’ at Jefferies. The FTSE 100 closed down 17.81 points at 7,451.18.

Economic News Expected Today


Type Period Forecast Previous Importance
Chicago Fed President Evans Speaks Nov     Low
Fed Chair Yellen Speaks Nov     High
NFIB Small Business Optimisim Oct 104.2 103.0 Low
FOMC Member Bullard Speaks Nov     Medium
Core PPI Oct 0.2% m/m; 2.3% y/y 0.4% m/m; 2.2% y/y Medium
PPI Oct 0.1% m/m; 2.4% y/y 0.4% m/m; 2.6% y/y High
Redbook Nov   -1.0% m/m; 2.6% y/y Medium
FOMC Member Bostic Speaks Nov     Medium
API Weekly Crude Oil Stock Nov   -1.562M Medium

Economic News Expected Today

EU  Eurozone

Type Period Forecast Previous Importance
CPI (Germnay) Oct 0.0% m/m; 1.6% y/y 0.0% m/m; 1.6% y/y Medium
GDP (Germany) Q3 0.6% q/q; 2.3% y/y 0.6% q/q; 0.8% y/y High
CPI (Spain) Oct 0.9% m/m; 1.6% y/y 0.9% m/m; 1.6% y/y Medium
GDP (Italy) Q3 0.4% q/q; 1.6% y/y 0.3% q/q; 1.5% y/y Low
ECB’s Lautenschlaeger Speaks Nov     Medium
CPI (Italy) Oct -0.2% m/m; 1.0% y/y -0.2% m/m; 1.0% y/y Low
ZEW Economic Sentiment (Germany) Nov 20.0 17.6 High
ECB President Draghi Speaks Nov     High
GDP (euro zone) Q3 0.6% q/q; 2.5% y/y 0.6% q/q; 2.5% y/y Medium
Industrial Production (euro zone) Sept -0.6% m/m; 3.2% y/y 1.4% m/m; 3.8% y/y Medium
ZEW Economic Sentiment (euro zone) Nov 29.3 26.7 Medium
ECB’S Coeure Speaks Nov     Medium

Economic News Expected Today

UK United Kingdom

Type Period Forecast Previous Importance
CPI Oct 0.2% m/m; 3.1% y/y 0.3% m/m; 3.0% y/y High
Core CPI Oct 2.8% y/y 2.7% y/y Low
PPI Output Oct 0.3% m/m; 2.9% y/y 0.2% m/m; 3.3% y/y Low
Core PPI Output Oct 0.2% m/m; 2.2% y/y 0.2% m/m; 2.5% y/y Low
House Price Index Oct 5.2% y/y 5.0% y/y Medium
BoE Gov Carney Speaks Nov     High
BoE MPC Member Cunliffe Speaks Nov     Medium

Other Global Economic Data Expected


Type Period Forecast Previous Importance
NAB Business Confidence (Australia) Oct   7 Medium
Industrial Production (China) Oct 6.3% y/y 6.6% y/y High
Retail Sales (China) Oct 10.4% y/y 10.3% y/y Low
PPI (Switzerland) Oct 0.2% m/m 0.5% m/m; 0.8% y/y Medium
BoJ Governor Kuroda Speaks Nov     Medium

Economic News Round Up MarketsWorld Bars

British shoppers reduced their spending by the most in more than four years in October, according to a survey by payments company Visa which added to other signs that the squeeze on incomes is hitting the high street. Consumer spending, adjusted for inflation and seasonal effects fell by 2.0 percent in October compared with the same month last year, Visa said, based on its credit and debit card data. It was the fifth fall in the last six months. In monthly terms, spending was down 0.9 percent from September.

Forex Round Up MarketsWorld Bars

The U.S. dollar edged higher against a basket of major currencies on Monday, as the it mildly recovered from the previous week’s broad losses, although concerns over the fate of a U.S. tax reform bill continued to weigh. The USD/JPY was little changed at 113.54. The EUR/USD was down 0.08% at 1.1659. The pound was lower as political pressure mounted on British Prime Minister Theresa May over the country’s exit from the European Union. The GBP/USD hit a low of 1.3062 and was last down 0.58% at 1.3115. The AUD/USD was down 0.38% at 0.7632. The USD/CAD was up 0.35% at 1.2727. The dollar index was up 0.16% at 94.45.

Commodity Round Up MarketsWorld Bars

Gold prices ended the session modestly higher Monday on a technical bounce after a rapid decline in late-morning action last Friday. December gold was up $4.80 an ounce at $1,279.00. December silver was up 17.4 cents at $17.045 an ounce.

Crude oil prices settled higher on Monday as investors weighed the prospect of supply disruptions amid rising Middle East tensions, but the upside was limited by growing expectations of a ramp up in U.S. crude output. West Texas Intermediate crude futures for December delivery rose 2 cents to settle at $56.76 a barrel. Brent crude fell 32 cents to settle at $63.20 a barrel.

The MarketsWorld Overview MarketsWorld Bars

U.K. headline inflation reached 3%, the top of the 1-3% range and prompted the Bank of England to raise interest rates for the first time in over ten years. In that rate decision, Carney said that inflation is expected to peak in October 2017, which is what this report covers. Forecasts are for a slight rise to 3.1%.



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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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