This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
This morning in London: The FTSE 100 is currently down 61 points at 6602.
FX and commodities: GBP/USD is up 45 pips at $1.6528, EUR/USD is up 11 pips at $1.3688 and USD/JPY is up 31 pips at ¥102.69. Brent crude is down 40 cents at $107.57 and gold is trading at $1267, down $2.15.
Stocks: Regardless of any specific news flow, the weakness of US markets on Friday will see the FTSE skewed towards the negative this morning. Once again press speculation over Vodafone and who it might take over, or who might try to take it over, should see an interesting start to the week after AT&T stated it would not be bidding. ARM Holdings has announced that Stuart Chambers will replace John Buchanan as chairman. Lloyds became the latest UK bank to suffer IT malfunctions over the weekend, and for a number of hours clients were unable to withdraw funds from their accounts or pay bills using their cards. BG Group has posted a downgrade to its expectations for 2014 and 2015, and this has resulted in shares selling off by more than 10% in the first 15 minutes of trading.
The day ahead: EU finance ministers will again be meeting in Brussels today, and following Friday’s US sell-off they may have plenty to talk about. On a slightly quiet day for economic data, we have both US flash service PMI and new home sales.
All figures correct at 8.15am. All times London time.