Cookie Policy

We use cookies on our website and have placed these on your computer. By continuing to use our website you consent to this. For more information, including how to change your cookie settings and to disable our non-essential Google Analytics cookies, please refer to our Cookie Policy. If you do not wish to be reminded of this on each visit, please use the close button.

Newsround: Returning risk appetite lifts FTSE 100

27 April 2018

Tags: Macro Economics

FTSE News 

A strong open on Wall Street, recovering some of the losses from earlier this week, provided a boost to the FTSE 100 on Thursday. By the close of trading the index of leading UK shares was up 0.57% at 7,421.43.

Next Tuesday (1 May), Wednesday (2 May) and Thursday (3 May) purchasing managers' index data is released for the UK manufacturing, construction and services sectors respectively. Also on Wednesday the US Federal Reserve announces its latest decision on interest rates. Recent speculation suggests the Fed may look to increase rates at a faster pace than the current guidance for two further hikes in the remainder of this year. On Friday (4 May) US non-farm payrolls are out. Among all the various global updates this is the one with the most power to move the market. The number, which is volatile and subject to frequent revisions, relates to job losses and creation, an activity that lags the economic cycle, but it is also the earliest release, based on hard data, to give a snapshot of the health of the world's largest economy.


Sector in focus  

Investors are scrambling to exit UK gambling firms such as William Hill (WMH) and GVC (GVC) amid media reports the max stake on fixed-odds betting terminals (FOBTs) will be cut to £2 a spin. Paddy Power Betfair (PPB) was also down. Last month, gambling stocks enjoyed an uplift after the Gambling Commission's review into FOBTs was not as bad as expected. The commission reported stakes should be cut to £30 or below in a bid to help reduce dangerous losses for problem gamblers.

FOBTs are a vital source of profits for bookmakers, as the casino games and computer simulated races generate very strong margins. But it seems the tide may have turned. Secretary of state for the Department for Culture, Media and Sport, Matthew Hancock, may opt for a £2 maximum stake with the support of the Treasury, according to reports. Media speculation also suggests the UK government could claw back any shortfalls in tax from the change by increasing point of consumption taxes online to 25%, up from 15%.


Economic Update 

Next Wednesday (2 May) the initial estimate of Eurozone GDP for the first quarter of 2018 is published. The release follows a string of mixed-to-negative data on the Eurozone which has led to some speculation the European Central Bank might step back from an expected winding down of financial stimulus by the end of 2018.


ETF Watch

 The recent strength in oil prices is likely to benefit companies which are active in the oil and gas industry. You can gain exposure to a basket of US oil companies with Source Energy S&P US Select Sector (XLEP) for an ongoing charge of 0.3%. 

Trade now


Company Announcements 

30 April - A first quarter update from WPP (WPP) is likely to be overshadowed by the continuing fall-out from the resignation of chief executive and founder Martin Sorrell. Management are likely to be quizzed both on the succession issue and the future strategy of the group, and whether this could involve asset sales.

2 May - Drug maker Indivior (INDV) is scheduled to update on first quarter trading. The company recently warned its best-selling opioid addiction therapy in the US could suffer a 'rapid and material loss of market share' if it fails to appeal a court ruling. It reported that the US District Court for the District of Delaware had decided US pharma farm Alvogen did not infringe the patent of opioid addiction therapy Suboxone Film.


How do you think markets will perform over the next few months?

Square Mile provide you with their quarterly outlook for investing in quarter two including Trump and the technology sector.

Read more

Looking for a fund that makes a positive social impact whilst delivering a decent financial return?

Independent fund research experts, 3D investing, offer up their top 6 ethical funds based for socially motivated investors.

View the funds


Writer: Tom Sieber Tags: Macro Economics

You can start investing today through any of our account options:

Dealing Account

Access a wide range of global investments in this flexible, unrestricted account.

Find out more

Stocks and Shares ISA

Take advantage of tax free investing with our Stocks and Shares ISA today.

Find out more

Self-Invested Personal Pension (SIPP)

From great value to best-in-class, access the SIPP to suit your needs through our extensive network of providers.

Find out more

I've still got questions!

We’re on hand to help at our Customer Experience Centre on 0345 0700 720

Selftrade does not provide investment advice. This article is the authors view and is not the view or opinion of Selftrade and Selftrade accepts no liability for any loss caused as a result of the use of this information. The opinions expressed are those of the author at the time of writing and should not be interpreted as investment advice.

The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance. We do not provide advice or make recommendations about investments. If you have any doubts about the suitability of an investment, you should seek advice from a suitably qualified professional adviser.

If you have a Stocks and Shares ISA, make sure you get the best value for your investments. We are ranked top for price on large portfolios (Platforum, 2018).

Open an account today and we’ll cover any transfer fees up to £100.*

*T&Cs apply.

Open a Stocks & Shares ISA

Find out more