London’s FTSE-100 has started the week with a modest bounce as sterling weakness once again wades into the fray. The pound is continuing to lose ground against other major global currencies and with the government still not looking all that convincing in the management of the Brexit strategy, this could last for a while longer, yet.
By Tony Cross, Monk Communications, 10th October 2016
Separately, gold prices are rising, with the consequent effect that this is dragging the precious metals mining stocks higher in its wake. At the opposite end of the board, easyJet is once again finding itself losing altitude, with today’s concerns circling around the carrier’s inability to make a stand in the Germany market, which is on the cusp of an important bout of consolidation.
There’s a US public holiday today – it’s not sufficient to close the main markets, but it does mean there’s a general absence of economic data on the table, so this could make further direction difficult to find. Clearly any notable reversion in the pound’s fortunes could take the shine off recent gains for the FTSE-100 and the Deutsche Bank situation is also worth watching – shares are coming off apace this morning, dragging some other banks lower, too – but as it stands in London we’re digging in above the 7,000 line.