There’s a mounting belief that the support for US stocks in the wake of Donald Trump’s election may be a little overdone and we could now start seeing money flowing back to other corners of the globe. Whilst it’s fair to say that UK stocks haven’t done all that badly over the last couple of weeks, any general divestment from the US is still likely to bode well.
Miners are very much leading the pack in early trade, recovering some of Friday’s losses and although we are starting to hear more about what the chancellor of the exchequer has in store in Wednesday’s mini-budget – more formally known as the Autumn Statement – influence here seems to be rather limited. Yes we are expecting confirmation of some increased infrastructure spending on roads and railways, but this had been seen as inevitable since the decision was made to Brexit. Government spending like this does after all help prop up the economy if overseas investors start getting nervous.
We have a quiet day ahead with very little economic data scheduled for release so additional meaningful direction may be difficult to find. Just hanging onto these early gains will by all accounts be seen as a victory.