The FTSE was up by 15 points in early trading. “Part of that positivity will stem from this morning’s Reuters poll” says Spreadex Analyst, Connor Campbell “stating that the risk of a ‘hard’ Brexit has fallen following Theresa May’s failure to secure a Tory majority; that’s not the same as the PM now chasing a ‘soft’ exit from the EU, but it’s still good news for sterling.”
The British Pound will continue to make headlines today in light of the release of the inflation figures scheduled for early in the afternoon.
ADS Securities Analyst, Konstantinos Anthis commented “Unfortunately for the sterling bulls the inflation report is expected to print in a bearish manner this month on the back of lower energy prices.”
The pound has been in the red since last week following the General elections’ result and PM May’s loss of the majority in the Parliament.”
“The bias for sterling remains negative and a move below the 1.2650 lows would expose the 1.2600 level.”
“However, do keep in mind that any Dollar weakness following the Fed meeting might limit pound’s losses against the Dollar making the Euro a more appropriate currency to sell the Sterling against.”
Over in Europe, the German ZEW Surveys are expected to build on four months of solid growth. Konstantinos Anthis added “The ECB recently upgraded their growth forecasts for the Euro area and this should be translated into a bullish reading for the ZEW Survey out today”
US bourses closed lower on Monday as Tech sector weakness continued after the weekend. Accendo Markets Analyst, Mike van Dulken noted “the Tech-focused Nasdaq underperformed, posting its worst two day performance of the year so far.”
“The blue-chip Dow Jones and S&P 500 indices were less affected, although still closed lower as Tech stocks led decliners, offsetting gains for General Electric on the former and Telecoms on the latter.”
“Tech remains on the back foot, although the sell-off showed signs of easing on Asian bourses”
