The FTSE was flat in early trading this morning. Disappointing economic data from China this morning took the wind out of the sails of a positive Asian trading session, which was seen at odds with a negative close on Friday from the US markets, that saw their record breaking run come to an end.
With little in the economic diary for the FTSE today, it’s likely that the ongoing political turmoil surrounding Theresa May’s leadership may prove to be the day’s biggest driver. Despite the Conservative party in-fighting, the Pound has arrested it’s poor start to the beginning of October, taking 0.4% off the Dollar and 0.5% from the Euro.
The Dollar has fallen back this morning following a positive response to the Hurricane weakened NonFarm Payrolls figures released before Fridays session.
ADS Securities analyst, Konstantinos Anthis commented “the dollar enjoyed a push to upside initially but this didn’t last long as investors preferred to take a wait-and-see approach on whether they should load their pro-Dollar trades following this report”
Momentum, however, remains with the Dollar according to Anthis, “historically large pullbacks in employment figures due to weather-related phenomena are generally followed by a strong rebound the month after and this is something that Dollar bulls keep in mind”
Investors should note that there will be little coming out of the US today owing to the Columbus Day holiday.