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The FTSE was caught between two of its most important sectors this morning. The hefty mining stocks were all rouged up thanks to the Chinese central bank raising its short-term interest rates; the banking sector, on the other hand, was flush was positivity following reports that Donald Trump is seeking to repeal the Dodd-Frank Law.

This meant the UK index needed a nudge in one direction or the other, something that came in the shape of the latest services PMI. Falling to 54.5 from 55.8 month-on-month – with input prices continuing to creep higher, if not quite as fast as they did for manufacturers on Wednesday – the PMI caused the pound to drop by 0.4% against the dollar and 0.1% against the euro, giving the green light for the FTSE to post a modest 30-ish point rise.

Looking ahead to this afternoon and the Dow Jones futures aren’t giving away much ahead of the non-farm jobs report. For January wage growth is expected to dip from 0.4% to 0.3%, with the unemployment rate steady at 4.7%; as for the headline non-farm figure, forecasts suggest a solid 170k reading. However, with the ADP non-farm number surging unexpectedly mid-week, a big surprise could well be in order.

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Connor Campbell

Connor Campbell

Connor joined Spreadex in 2014 as part of a newly expanded financial analyst team after graduating from the University of Southampton with an MA in English. His focus is on providing Spreadex's customers with up-to-date and informative news, and is responsible for the market analysis found on the Spreadex website.

Connor produces three daily market updates, a daily stock earnings preview, a weekly financial market preview piece every Friday, a round-up of all the big financial stories making the weekend press every Monday morning and regular stock market features.

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