The FTSE was up by 12 points in early trading this morning after a quieter session over in the US following the Columbus Day holiday.
A weaker Dollar is holding back the FTSE 100 multi-nationals but it is Sterling, which has arrested its October decline in recent days, that is likely to provide any driving force this morning with the release of Industrial and Manufacturing Production data.
ADS Securities Analyst, Konstantinos Anthis commented “analysts are expecting a stable printing which should allow sterling to remain on positive footing. However, we have to mention here that last week’s softer PMI levels suggest we could get a bearish surprise in the Production levels today and should that happen then the pound might retreat.”
Commodities are currently the main beneficiaries of a weaker Dollar. Accendo Markets analyst, Mike van Dulken commented “Oil prices trade just shy of yesterday’s highs (US Crude $50, Brent $56), buoyed by a combination of USD weakness, Saudi Arabia cutting exports crude oil allocations for November by 0.5m barrels, and positive OPEC comments about gradual market rebalancing”
He added, “Gold has extended its rebound to 1-week highs, closing in on the late September’s $1290 breakdown, helped by USD weakness and geopolitical uncertainty in several geographies.”
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