After yesterday’s sell-off, the FTSE-100 has started with a bounce although London’s blue chip index is at least for now still finding itself short of the 7,000 level.
By Tony Cross, Monk Communications, 18th October 2016
The vast majority of constituents are sitting comfortably in positive territory with Informa topping the table, up around 2% off the back of a broker upgrade, whilst gold is being thrust back into focus too as the spectre of inflation looms after a long absence, driving precious metals miners higher, too. At the other end of the board, disappointing numbers from fashion retailer Burberry have pushed the stock markedly lower although the weak pound ought to offer some consolation here, whilst Pearson is also continuing yesterday’s losing streak – the company may be gaining market share, but the fundamentals of educational publishing continue to evolve.
Looking ahead, it’s those inflation readings from both the UK and the US that we will have very much in focus. Anything too hot from the UK could cause a degree of disquiet over just how the Bank of England should counter this as hiking rates now would certainly be seen as unhelpful, whilst the corresponding US figure should offer some clarity over the timing of the Fed’s next move.