The FTSE started on a positive note this morning, climbing 0.7% in early trading.
Spreadex Analyst, Connor Campbell noted “There were a few potential reasons for the FTSE’s substantial gains. That sterling has taken an early dip no doubt helped out the index, with the pound dropping 0.3% against the dollar.”
“The oil and, especially, mining stocks were also buoyant after the bell, despite a slightly disappointing manufacturing PMI from China overnight.”
“Finally, and arguably most importantly, there was the 3.5% jump from HSBC following the firm’s half year update. Pre-tax profit rose 5% to $10.24 billion, easily breezing past the $9.5 billion forecast, with adjusted revenue at $26.1 billion.”
Investors will also be keeping a close eye on tobacco stocks, British American Tobacco and Imperial Brands, following Friday’s late sell-off on proposals from the FDA to make new products non-addictive.
The Eurozone indices weren’t quite as enthusiastic as the FTSE in early trading, though both the DAX and CAC have still managed a 0.3% and 0.5% increase respectively. Connor Campbell added “The main focus for the region this Monday is the Eurozone-wide inflation reading, forecast to remain at 1.3%.”
“Anything higher than that could give a boost to the euro, which is currently down 0.2% against the dollar, and quickly spell the end of the DAX and CAC’s gains.”
ADS Securities Analyst, Konstantinos Anthis suggested “Today’s inflation figures could be the catalyst if the report prints in a favourable manner but even if this doesn’t happen the bias for the euro is pointing higher.”
US equity markets closed the week on Friday with a mixed note as weaker-than expected Amazon results dragged down the wider market. Accendo Markets Analyst, Henry Croft noted “This initially weighed on the Tech-focused Nasdaq, however the index closed off its lows, while the tech weakness also filtered through to the S&P500.”
“The Dow Jones was the only index in positive territory (+0.2%) as positive results for Chevron offset peer ExxonMobil’s losses, helped by gains for UnitedHealth and Goldman Sachs.”