The FTSE-100 is kicking off Wednesday’s session with something of a mixed outlook.
By Tony Cross, Monk Communications, 19th October 2016
Key economic releases from China overnight painted something of a mixed picture – there was no disappointment in terms of GDP, but industrial production stumbled, leaving some of the heavyweight FTSE100 commodity stocks to row back a little on yesterday’s gains.
Chinese retail sales also came in a shade above expectations which has delivered some much needed cheer for Burberry after the torrid reception their update was given by the market yesterday.
Very much at the other end of the spectrum from a fashion house and builders supply merchants Travis Perkins issued their own update this morning, which is receiving an equally critical response as cited uncertainties over consumer demand mean that earnings are expected to come in below expectations, whilst concern over demand next year is leading to more site closures.
Looking ahead, UK unemployment data this morning will be in focus to see if there are any further clues for the country’s economy. There has been a surprising level of resilience here since the Brexit referendum, but will those inflationary pressures be hiking wages or will confidence be waning – either way it could elicit a response for equities. US oil inventory data is also in focus and early indications here suggest we will see a big draw on crude. Again this will support energy stocks, but it will do little to help calm inflationary worries at the Bank of England.