skip to Main Content

Free Newsletter: Actionable insight every morning for the self-directed investor. Find out more

At 1.6% against the 1.4% expected, and the 1.2% seen the month previous, December’s inflation figure marked the highest reading for more than 2 years. Given that this makes a Bank of England rate hike more likely than another cut the pound was understandably pleased, climbing 0.9% against the dollar (aided by a dose of greenback weakness) and a more measured 0.2% against the euro. This in turn hampered the FTSE, with the UK index sporadically dipping under 7300 for the first time since crossing that level last week.

Of course sterling’s biggest test this Tuesday is still to come, with the Prime Minister’s hard-Brexit-outlining address just around the corner. It appears that, thanks to reports that have been steadily arriving since Sunday, the majority of what May will say has already been revealed – control over immigration and leaving the jurisdiction of the European court of justice prioritised over reaming in the single market – meaning the pound’s reaction may not be as pronounced as what was seen yesterday. If there is anything unknown still to be announced, however, then the currency could be in for a bumpy afternoon.

Elsewhere the DAX and CAC fell sharply, losing 0.9% and 0.7% respectively as both the German and Eurozone-wide ZEW economic sentiment readings disappointed. As for the returning Dow Jones, the futures are pointing to a 35 point fall after the bell, something that would leave the index lurking just above 19800.

Become a better investor with SharePad Designed to give you the confidence to pick your own investments, Sharepad gives you access to a wealth of information on UK, US & European stocks. Find out more

Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Connor Campbell

Connor Campbell

Connor joined Spreadex in 2014 as part of a newly expanded financial analyst team after graduating from the University of Southampton with an MA in English. His focus is on providing Spreadex's customers with up-to-date and informative news, and is responsible for the market analysis found on the Spreadex website.

Connor produces three daily market updates, a daily stock earnings preview, a weekly financial market preview piece every Friday, a round-up of all the big financial stories making the weekend press every Monday morning and regular stock market features.

Stocks in Focus

Here are some of the smaller companies we are following most closely. They all represent significant growth stories in our view. Our in-depth reports go into more detail on why we like them.

Comments


Back To Top