All trading involves risk. Losses can exceed deposits.

FTSE down as Ebola fears continue

In mid-morning trading the FTSE 100 is down 37 points as UK inflation drops again.

All trading involves risk. Losses can exceed deposits.
London skyline
Source: Bloomberg

In London, stocks have gotten off to a shaky start after a patient being treated for Ebola died in Germany. The fear surrounding the Ebloa crisis is spreading like wildfire, and traders won’t feel confident in equity markets until this issue is put to bed. Mario Draghi and Jens Weidmann are at loggerheads over how to tackle the stagnating eurozone economy. Mr Draghi wants to introduce quantitative easing but the Germans are having nein of it. 

Mulberry has become synonymous with high-end handbags and profit warnings; the stock has been hammered this morning after the company stated that full-year profits will be ‘significantly’ below estimates.

Homebuilder Bellway is 3% higher after posting a healthy jump in profits, with the dividend also increasing. The company's figures are proof that the British property market is buoyant.

Sterling has been struck a savage blow after the UK CPI report showed the cost of living declined, the deflation in the eurozone creeping across the English Channel. The German ZEW report swung to a negative reading of 3.6. It's fair to say ‘unconventional tools’ are required to enhance investor confidence in the region. 

In the US, we are expecting the Dow Jones to open up 21 points at 16,342 after the last minute selloff in New York last night. JPMorgan kicked off reporting for US banks with an earlier-than-expected release in which earnings per share narrowly missed estimates but stock went higher in pre-market trading. 

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. See full non-independent research disclaimer and quarterly summary.