FTSE gains ground as trade tensions continue to cause swings in markets

After a rough start to the week, the FTSE has reversed directions and posted gains. In the North American session, the pair is at 7,279, up 0.43% on the day. There are no British releases on the schedule.

The uncertainty surrounding Brexit and global trade tensions are making fund managers increasingly pessimistic over the pound. This could bode well for the blue-chip FTSE, as investors look for attractive alternatives to the pound. Major financial services companies are reducing their exposure to the pound, with some going further and shorting the currency. The May government has been unable to present the public with a clear roadmap for departing the EU, and a no-deal remains a possibility, although both the EU and Britain are in agreement that a no-deal exit would be disastrous. Given the turmoil over Brexit, the pound is likely to face further headwinds in the coming weeks.

The trade war between the U.S. and China has shaken global equity markets, and the FTSE continues to show strong volatility. In the latest bout between the two super-economies, the U.S. slapped tariffs on $200 billion in Chinese products, and China responded with counter-tariffs on $60 billion in U.S. products. Despite the tariff tussle, talks continue between the U.S. and China, with the next round of negotiations scheduled for Beijing. The tariffs have made huge headlines, but do not take effect for several weeks.

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Economic Calendar

Wednesday (May 15)

  • There are no British events

*All release times are DST

*Key events are in bold

FTSE, Wednesday, May 15 at 11:15 DST

Previous Close: 7,241 Open: 7,261 High: 7,311 Low: 7,219 Close: 7,279

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher

Market Analyst at OANDA
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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