The FTSE is up 20 points in early trading this morning following further record closing highs on Wall Street yesterday.
The same can’t be said for the Pound this morning as it continues its slide. News that Standard & Poors was sceptical over a UK interest rate hike in November on the back of weak economic data, falling car sales for the first time since 2011, an uninspiring speech from Prime Minister, Theresa May and Brexit looming large on the horizon, are all combining to push Sterling down 0.4% against the Dollar and 0.5% against the Euro.
Over in the US, equity markets extended their positive closing streak to six sessions yesterday in addition to their tally of fresh record highs. Accendo Markets analyst, Mike van Dulken noted “That’s 42, 45 & 53 this year for the S&P, Dow and Nasdaq Comp, respectively.”
“Apple underperformed on reports of delayed iPhone X shipments until December. An oil price reversal also weighed on Energy while a big ISM Non-Manufacturing jump was at odds with a weak ADP print (lowest since Oct 16) ahead of tomorrow’s keenly watched Non-Farm Payrolls jobs report.”
Despite these challenges, and earnings season for Q3 about to start in earnest, sentiment for US equities remains positive.
The Dollar is enjoying a strong run too. With positive economic data released yesterday for Non-Manufacturing PMI and further strong data from the US ADP Employment Change for September, sentiment remains positive ahead of the Non-Farm Payrolls release tomorrow.