It’s proved to be a quiet start this morning, as investors process last nights shocking events in Manchester.
Spreadex Analyst, Connor Campbell commented – “The FTSE started the day effectively flat at 7500, with most of the early action centred on the pound. Sterling dropped 0.1% against the dollar, taking cable back below $1.30, and 0.2% against a euro, pushing the pound to its lowest price in nearly 8 weeks. Investors are assumedly shaken by the events in Manchester yesterday evening, combined with the continued effects of the Tories’ election wobble.!
Campbell added – “The precious few things on the UK’s economic calendar will likely keep sterling in focus. The inflation report hearings are the main event, and with the latest CPI reading hitting 2.7%, Mark Carney and co. can expect a grilling about if, when and how they are coming to combat the country’s rapidly rising prices.”
After the Eurozone failed to agree a Greek bailout deal yesterday, there is a steady stream of data to deal with this morning.
Connor Campbell noted – “Already the CAC has dealt with a week French manufacturing PMI, but a far better than forecast services reading, allowing the index to climb 0.4% higher. Germany, meanwhile, is facing a slight dip in manufacturing, but a minor improvement in its services PM. The prospect of this hasn’t done much for the DAX, which has nudged 0.1% higher, though the index might be more interested in the German Ifo business climate figure, set to hit 113.1 from 112.9 last month.”
Over in the US, indices closed higher across the board on Monday, with the S&P 500 returning to within touching distance of all-time highs.
Accendo Markets Analyst, Mike van Dulken noted – “Closing only around 0.4% from the previous record, the Tech sector led risers on the S&P, a performance that helped the Nasdaq to outperform peers. The Dow Jones was led once again by Manufacturers – 3M, Boeing – as President Trump continues his Middle Eastern tour, while Pfizer and DuPont contributed the most losses.”