The FTSE opened down again this morning, losing 0.2% after the bell and sitting just above month lows.
Things may change a little later this morning with UK manufacturing and industrial production readings – which are forecast to rise to 0.5% and 0.4% respectively, alongside the goods trade balance figure, with the deficit set to widen to £10.8 billion.
Spreadex Analyst, Connor Campbell noted “Beyond the various geopolitical dramas that so weighed on the markets yesterday – including a Trump/Putin-focused G20 meeting – the UK index is dealing with the latest BP and Shell-upsetting retreat from Brent Crude, which fell 0.8% to dip to a one week low of $47.50 per barrel.”
“The Eurozone indices didn’t fare any better, continuing to suffer in light of the euro’s strength. The DAX dropped by 25 points and is now flirting with 2 and a half month lows, while the CAC is back below 5150 following a 0.3% decline”
Over in the US, the major indexes again closed lower yesterday. Accendo Markets Analyst Mike van Dulken commenting “Major US bourses closed sharply lower on Thursday as large-cap Tech stocks were subject to a sharp sell-off, while oil prices pared overnight gains to hurt Energy names.”
“The Nasdaq underperformed peers, falling 1% to highlight the weakness in Tech, while the S&P500 was not far behind, down 0.9% as the Energy sector compounded losses.”
“The Dow Jones fell by 158 points as Disney and Apple provided the most losses, offsetting a positive performance from DuPont.”
The main focus today, as they are on the first friday of each month will be the non-farm payrolls readings which are released early this afternoon. LCG Analyst, Ipek Ozkardeskaya suggested “The consensus for the June NFP is 178’000 versus 138’000 printed a month earlier. The average hourly earnings may have improved by 0.3% month-on-month, from 0.2%.”