The FTSE was up 10 points in early trading on the back of a weaker Pound and following yet more record highs on Wall Street yesterday.

The S&P closed higher for an eighth consecutive session, fueled by Technology stocks, Netflix in particular after it hiked prices due to inflationary pressures.

Accendo Markets analyst, Mike van Dulken noted “Investors sentiment was buoyed by economic optimism after strong macro data – durable goods, ISM -, a soft touch appointment as [Federal Reserve] Banking watchdog and House Republicans approving a budget resolution that increases the chances of passing of tax reform.”

“This despite a tricky US jobs report looming in light of recent hurricanes.”

ADS Securities analyst, Konstantinos Anthis added “Traders are confident of a strong Q4 after seeing that the recent US data keeps pointing towards more growth and with little risk currently on the horizon stocks are hitting fresh highs.”

Today investors’ attention will be focused on the release of the Non-Farm Payrolls report from the US.

Konstantinos Anthis commented “The toll that Hurricane Harvey had on the US economy is yet unknown but it’s bound to be reflected on this month’s jobs report which will undoubtedly print on the soft side.”

“However, there are some indications that this may be less bearish than some think. Strong Manufacturing and Services ISM figures and a positive ADP reading suggest that the NFPs might not come in as low as expected today, so we might be in for a surprise.”

The Pound meanwhile, has continued it’s poor recent run with a drop of 0.3%, against the Dollar and 0.2% against the euro. While the cause of Sterling’s recent slump has been multi-faceted, the situation this morning is much clearer.

Spreadex analyst, Connor Campbell explains, “The sound of [Conservative Party MPs sharpening knives has only grown louder since Theresa May’s Thick of It-esque speech mid-week.”

“Another Tory leadership battle would be seriously bruising for the Pound, especially since, at the moment, there is no real clear – or, at least, market-preferred – candidate to replace May”

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6th October 2017
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