London’s FTSE-100 is starting the day a shade lower, with progress being held back by half a dozen constituents going ex-div.
By Tony Cross, Monk Communications, 20th October 2016
Airline stocks easyJet and IAG are topping the board, being dragged higher by news that Lufthansa has upped its profit target for the year, whilst mining stocks are also finding some support with read-across from yesterday’s supportive oil inventory stats proving helpful here.
Looking ahead, we have UK retail sales figures set for release later this morning and given the buoyant state of the post-referendum economy, expectations are running high. However the Bank of England clearly needs to stay one step ahead of any inflationary threat so in the event that this figure starts to look a little too hot, equities could find themselves under pressure.
Last night’s final US Presidential debate brought little new to the table and again this should be seen as positive for markets. The safer candidate appears to be on course for victory and the fact we’re not set to leap completely into unknown territory is something that will be applauded on a global basis. It’s worth adding that this race still has over two weeks left to run, but with equity market valuations still looking toppy, any threat of uncertainty could result in some hefty downside adjustments.
