FTSE advances further on sterling weakness
|In mid-morning trading, the FTSE 100 is 13 points higher, as markets grapple with a disappointing result to the OPEC gathering.
- London bolstered as sterling slumps
- Oil bounce could be short-lived
- US markets at risk of profit-taking
A weaker pound is doing wonders for the UK market this morning, helping both the FTSE 100 and FTSE 250 to hold in positive territory even as European markets fall. Investors have been unsettled by the all-to-predictable end to the OPEC meeting yesterday; buck-passing was the main skill in evidence, as the cartel opted merely to extend its production cuts in time, but not in scope. Oil has fallen sharply as a result, and today's dead cat bounce is not likely to last. On a day bereft of big news all that investors have to focus on is the G7, but this is mainly down to the hope that Donald Trump will engage in some more handshake wars with his fellow leaders. Cable has spent the week trying vainly to break $1.30, but the most recent YouGov poll has empowered the bears. Such a polling bounce for Labour was also eminently predictable (a similar occurrence took place for the Conservatives in the 1997 election, and we know how that turned out), so we should see some cable buying as the session goes on.
US durable goods orders, a second Q1 GDP estimate and Michigan confidence figures take up the afternoon, which should provide some greenback volatility as the dollar basket struggles to hold 97. It's been another great week for US markets, notching up further highs, although the prospect of long weekend in the US might well prompt some hesitancy this afternoon. Ahead of the open, we expect the Dow to start at 21,070, 12 points lower from last night's close.
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