The sun is shining, market volumes are low and there is a very real chance the Ashes will not make it to a fourth day. These factors combined almost guarantee long lunches in the City will be de rigueur today.
There’s still no sign of an end to the monotony of reporting the setting aside of additional funds by UK banks for PPI mis-selling. Lloyds’ total bill was revealed to be running at £13.4 billion this morning. But despite these historical indiscretions, the government has had little difficulty reducing UK taxpayers’ holding in the bank to just under 15%. Now the question hanging over George Osborne’s head is whether he should carry on selling while the selling’s good, or hold some back for the discounted market placing he promised before the election.
IAG CEO Willie Walsh loves a challenge, and having whipped Iberia into shape, as witnessed in this morning’s figures, he is now relishing the prospect of concluding the deal to take over Aer Lingus – and the inevitable battles with the unions that any restructuring will require.
The growing conglomerate of airlines will be enjoying the benefits of lower oil prices and the eased conditions should enable senior management to fully focus on the Irish airline’s issues.
As the US comes to the end of this latest reporting season, it’ll be left to this afternoon’s University of Michigan consumer sentiment figures to drum up a little interest in the markets. US traders, much like their counterparts in London, will be forgiven for looking to start the weekend early, especially as Monday will bring a plethora of manufacturing PMI data to absorb. Hopefully that should add a touch of adrenaline to these lacklustre markets.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Recommended Content
Editors’ Picks
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up. The pair traded at 0.6518.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: Slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.