The FTSE got off to a quiet start this morning despite yet more record highs on Wall St and a largely positive session in Asia.
With UK Construction PMI data scheduled for release this morning, the Pound is currently sitting flat against the Dollar and the Euro. Spreadex analyst, Connor Campbell suggested “Analysts are forecasting the PMI will remain at the 51.1 it unexpectedly slipped to in August.”
“Worryingly, that figure is already low enough that another drop would see the construction sector teetering on the edge of contraction – no wonder the FTSE and Pound are feeling tentative.”
The dollar is dominating through the early part of the week with demand for the US currency increasing as traders brace for the prospect of robust manufacturing figures an even more bullish Federal Reserve position next year.
ADS Securities analyst, Konstantinos Anthis commented “News that President Trump is considering Kevin Warsh, a well-known bullish policymaker sent the dollar higher across the board yesterday while at the same time demand for the European majors retreated on the back of rising political risks and slower business activity.”
“Furthermore, the greenback further extended its uptrend when the Manufacturing ISM figures printed higher than expected coming in at a 13-year high indicating that the sector is growing strong.”
Over in the US, equity markets began the fourth quarter positively, with all three major indices closing at all-time record highs. Accendo Markets analyst, Mike van Dulken noted “The Dow Jones outperformed, rallying by over 150 points as Goldman Sachs contributed the most gains, while the S&P 500 also benefited from Financial strength alongside Healthcare names and the Nasdaq closed higher despite several large cap Tech names closing lower.”
