The FTSE has opened marginally ahead this morning stemming yesterday’s fall in late trading, with the pound very gently building on yesterday’s gains.
ADS Securities Analyst, Konstantinos Anthis suggested “In the UK, the latest polls would seem to indicate that Theresa May will win with a comfortable margin and this was reflected by the robust performance of the sterling yesterday.”
“Any kind of win for May will be treated as a positive outcome for the pound and a relief rally to the upside should be expected.”
Spreadex Analyst, Connor Campbell noted “With sterling in ascendance the FTSE found itself flat after the bell, opening below 7500 for the first time in nearly 3 weeks.”
“It is going to be interesting to see how the UK index behaves in contrast to the pound, and whether the two will rise in tandem if the Tories secure a landslide victory.”
While investors’ focus is on the election, the Eurozone is providing a distraction today with the month’s ECB meeting. Connor Campbell suggested “The euro has already suffered on reports that the central bank would be cutting its inflation forecasts, something that would push any potential rate hike further down the road, so reaction may be muted unless Mario Draghi and co. reveal anything else of interest.”
Over in the US, equity markets closed higher as markets hoped that today’s key testimony by ex-FBI head Comey may be less damaging than first expected. Accendo Markets Analyst, Mike van Dulken commented “After Comey’s statement was released in full, major bourses rallied to trade close to session highs. Sectors heavily influenced by the ‘Trump trade’ – Healthcare, Banks – helped the Dow Jones rally 0.2%, outpacing the S&P500 (+0.1%), however the tech-focused Nasdaq outperformed, up 0.4%”