Account
New to ADSS? Open an
account now to get started.
Already have an account?
Add funds to your ADSS account
Account
New to ADSS? Open an
account now to get started.
Add funds to your ADSS account
What’s happening: UK stocks closed higher on Friday amid gains in healthcare and energy shares.
What happened: The blue-chip FTSE 100 snapped a three-session losing streak following the release of GDP data.
UK bank stocks rebounded after having declined sharply in the previous session on the Bank of England’s rake hike news.
Why it matters: Data released on Friday showed that the British economy grew 0.1% during the first three months of the year, the same as in the previous quarter and in-line with market expectations.
The country’s construction sector grew 0.7%, with manufacturing performance rising 0.5% during the first quarter.
“I think the U.K. is back, and those are numbers that no one would have predicted even three months ago,” said the country’s Finance Minister Jeremy Hunt.
However, on a month-on-month basis, the country’s GDP contracted by 0.3% in March, versus a flat reading in the prior month.
In other economic reports, industrial production in the UK rose 0.7% in March, rebounding from two straight declines. The UK’s trade deficit shrank to £2.86 billion in March, recording the smallest deficit in four months.
On Thursday, the Bank of England had increased its interest rates by 25 basis points to 4.5%, raising rates for the twelfth consecutive time in a bid to combat inflation. Although the move was widely expected, it exerted pressure on the UK stock market. Markets expect the country’s central bank to announce one more rate hike next month, before pausing its monetary tightening cycle.
However, UK’s inflation rate remained in double-digits, at 10.1%, in March amid surging food and energy prices. The country has the highest inflation rate among developed economies and the slowest growth rate among the G7 countries.
London’s FTSE 100 gained 0.31% to close at 7,754.62, after recording losses for three sessions. The mid-cap FTSE 250 stock index fell 0.4% to 19,188.37 on Friday.
Both stock indices ended the week in the red. This marked the third consecutive weekly decline for the FTSE 100, its longest losing streak in seven months.
The GBP/USD forex pair fell 0.44% to 1.2455 on Friday, after declining around 1% on Thursday.
What to watch: No major economic reports are scheduled for release today. Investors will focus on the release of data on employment and labour productivity due to be released on Tuesday.
Context: The CAD/USD forex pair weakened on Friday, extending losses from the previous session.
Details: On Thursday, the CAD/USD forex pair had recorded its biggest decline since early March, amid falling oil prices.
The loonie extended losses on Friday amid a further decline in prices for crude oil, one of Canada’s major exports. WTI crude oil prices fell 1.2% to settle at $70.04 per barrel on Friday, with debt ceiling concerns adding to growth slowdown worries.
Strength in the US dollar also exerted pressure on the loonie. The US dollar index, which measures the greenback’s performance versus a basket of major peers, gained over 0.6% to reach 102.71 on Friday.
The CAD/USD forex pair lost 0.44% to 1.3549 on Friday, amid a rise in yields on benchmark government debt.
The S&P/TSX Composite Index added 0.01% to settle at 20,419.62 on Friday, after losing by around 0.4% in the previous session. Canada’s index exited the week around 0.9% lower.
What are expectations: Traders await the release of economic reports on housing starts and wholesale sales from Canada today. Housing starts in Canada, which fell by 11% to 214,000 units in March, are expected to increase to 221,000 in April. Analysts expect wholesale sales to contract by 0.4% in March, following a 1.7% decline in the previous month.
Traders will also watch inflation data, due for release on Tuesday. The annual inflation rate in Canada, which fell to 4.3% in March, is likely to ease further to 3.9% in April.
Other Markets: US trading indices closed lower on Friday, with the Dow Jones index, S&P 500 and Nasdaq 100 down by 0.03%, 0.16% and 0.37%, respectively.
Ukraine’s President Volodymyr Zelenskiy said that the country can defeat Russia by the end of the year if the West continues to provide help. The news sent the safe-haven US dollar index slightly lower this morning.
Japan’s producer prices rose by 0.2% in April, following a 0.1% increase in March, exerting pressure on the JPY/USD forex pair.
The People’s Bank of China held its interest rate unchanged at 2.75% on Monday, which sent the CNY/USD pair lower in forex trading this morning.
Australia’s private house approvals fell by 2.8% to 8,312 units in March, in-line with the preliminary estimate. The news lent support to the AUD/USD forex pair.
Thailand’s gross domestic product grew by 2.7% year-over-year in the first quarter. The figure exceeding market expectations of 2.3% growth sent the THB/USD pair higher in forex trading this morning.
Germany’s wholesale prices, Japan’s machine tool orders, Saudi Arabia’s wholesale prices change and consumer price index, India’s wholesale price inflation rate, passenger vehicle sales and balance of trade, Turkey’s central government budget balance, Eurozone’s industrial production, US NY Empire State manufacturing index, net long-term TIC flows, net purchases of US treasury bonds and notes, and net treasury international capital flows, China’s foreign direct investment, Spain’s consumer confidence, as well as Central Bank of Brazil focus market readout.
ADSS
8th floor, CI Tower
Corniche Road
PO Box 93894
Abu Dhabi
United Arab Emirates
Trading Services
ts@adss.com
+971 2 657 2414
Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.
ADS Securities L.L.C – S.P.C (“ADSS”), a limited liability company – sole proprietorship company incorporated under United Arab Emirates law. Registered under Commercial License No.1190047. ADS Securities L.L.C S.P.C is regulated and authorised in the UAE by the Capital Market Authority (CMA) under Category 1 License No.305027 (Trading Broker, Trading and Clearing Broker, Trading Broker in the International Markets, Trading Broker of OTC Derivatives and Currencies in the Spot Market, Financial Products Dealer) and Category 5 License No.20200000217 (Introduction). Registered Office: 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.
The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.
ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.
