London’s FTSE-100 is back below the 7,000 level in early trade, with losses across most major Asian indices setting the pace.
By Tony Cross, Monk Communications, 17th October 2016
The vast majority of London’s blue chip stocks are squarely in negative territory and it’s educational publisher Pearson that is at the foot of the board, off by around 5% in the wake of a trading statement that clearly failed to impress the market.
Housebuilders are also struggling in the wake of news from Rightmove which suggests that the sector isn’t generating new properties fast enough, whilst of the few stocks that are faring well it’s the miners who are dominating the top of the index, along with some welcome relief for easyJet, with the low cost airline finally gaining some altitude after a recent bout of turbulence,
We’ve got a quiet day ahead with Eurozone inflation the likely stand-out. Anything too cool here will raise calls for further stimulus measures from Mario Draghi and as we’ve seen in the past, the read-across into UK markets typically means something of a boost for the FTSE-100.
Assuming that the pound doesn’t concede further ground from here, that will also limit the upside potential for London stocks, although with Wall Street’s earnings season finding its stride in the week ahead, again this could be a source of considerable influence in the near term.
