Oil Lifts Asian Markets

Monday, 16th October: The FTSE started off the week around 0.28% higher before simmering back down to fairly flat movements during the afternoon. The kick-start was pinned down to the confident performance in oil and commodities which had a positive effect on the Asian markets. However, where there is good news there is also bad. The origin of these events is the conflict between Iraqi and Kurdish forces revolved around Kurdistan’s age-old dream to gain independence from Iraq, which continued to brew overnight as Iraqi forces began to move into an area called Kirkuk, in order to gain control over the oil-rich base which is currently occupied by the Kurdish military base. By mid-day (BST) oil was trading 1.75% higher at $58.22.

At the top of the FTSE was the miners and drug stocks, including the likes of; Antofagasta, Rio Tinto, BHP Billiton, Anglo American, Shire and Glencore, the majority of which stayed at the top of the index firmly for the entirety of the day. On the opposite end was ConvaTec, down around 26% in the latter half of the trading day at 206p after releasing a Q3 trading update, which carried news of supply issues and a reduction in their full year revenue guidance.

In the news again today is Apples iPhone 8, which doesn’t seem to be doing enough to persuade those in the market for a new phone that it is worth the extra pounds compared to its predecessor. It looks as though the majority of people would rather save around £150 and go with the iPhone 7 instead of enjoying the futuristic wireless charging that comes with the 8, or, more importantly, miss out on the iPhone X, although it’s not likely people will be willing to pay $999 for that either.

Across the pond, President Trump seems to be off North Koreas’ case today, as he turned his attention towards Iran and even fired shots at Hillary Clinton. The tweet, referring to Clinton as “crooked”, was fairly out of the blue, especially considering she’s been under the radar for quite a while now, but Trump found it appropriate when he was allegedly asked if Clinton would run for President again in 2020. More importantly, his increasingly hostile approach towards the nuclear deal with Iran is worrying world leaders, who believe that his antagonistic approach opens the door for war.

The FTSE ended the day in the opposite direction to where it started, reversing its gains and trading down 0.11% at 7527.

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