Following yesterday‘s seven-way leadership debate and Theresa May’s notable absence, the pound has taken another tumble this morning.
Spreadex Analyst, Connor Campbell commented – “Sterling shed a further 0.2% against both the dollar and the euro after the bell, and while that means the pound is still off of Wednesday’s lows against the former, against the latter the currency is stuck at its worst price since mid-March. The reason? Another poll of course! The latest YouGov survey – so maybe the market should treat it with a pinch of salt – has a mere 3 point gap between Labour and the Tories, the latest example of momentum being with Jeremy Corbyn.”
The pound’s election-jitters are continuing to push the FTSE higher, with the UK index climbing another 30 points to just about cross 7550. Campbell added – “While it looks like the election is going to dominate once again, the UK does have a bit of data to deal with this Thursday: May’s manufacturing PMI. Analysts are expecting the figure to fall from 57.3 to 56.5 month-on-month, a move that likely won’t help out sterling.”
Over in the US, equity markets continued to fall from their record highs, despite the Nasdaq opening at a new record high, as investors engaged in a spot of profit taking. Accendo Markets Analyst, Henry Croft noted – “The S&P500 fell by a single point, remaining within a stone’s throw of all-time highs, while the Dow Jones recovered from early lows to close 0.1% weaker on account of a poor session for Financials.”
Investors will note a deluge of global Manufacturing PMI readings today. “In mainland Europe”Croft suggested, “weaker final May readings for Italy and France are set to be offset by a confirmed strong German performance, helping the headline Eurozone reading to further build on April’s highest reading since 2011, while the UK reading is expected to retreat from April’s 3-year high.”
“This afternoon, US Non-Farm Payrolls curtain raiser ADP Employment Change is seen recovering after April’s disappointing showing, while Manufacturing is expected to be confirmed a touch weaker in May.” added Croft.