Another leg lower for the pound overnight is helping the FTSE-100 consolidate around the 7,100 level, although there’s certainly an air of traders siting on the sidelines as we wait for the next directional information.
By Tony Cross, Monk Communications – 11th October 2016
Overnight saw the release of the latest BRC data and UK consumer demand is surging back to pre-referendum levels. This has given something of a boost to some in the sector, but despite bumper food sales, the supermarkets are struggling – there’s a realisation that any respite here will likely be short-lived as inflationary pressures will soon push up prices across the board.
Airline stocks are struggling as higher oil prices amidst speculation that an Opec deal will be done next month take a toll here, but it’s Informa that is the day’s worst performer, down 8% as the dilution effect of the admission of nil-paid rights on the stock is accounted for.
The start of US earnings season with numbers from Alcoa before this morning’s opening bell is expected to be closely followed, with this having the potential for read across to the wider market. A poor US earnings season may lend support to Donald Trump’s Presidential campaign. As this is something that is likely to be negative for markets globally, these corporate reports are as important as ever.
