Mining rally lifts FTSE
|A strong day for miners means that the FTSE 100 is top of the pack today, gaining 30 points heading into the close.
- China & weak dollar boost miners
- Sterling’s fate in the hands of tomorrow’s CPI
- Dow tiptoes higher
Gains in London have been underpinned by the mining sector, which remains in robust form after China GDP data overnight. Recent US dollar weakness has taken a break today, but Friday’s big move lower in the greenback confirms that more losses could be on the way, which is likely to spell further good news for commodity prices and miners as well. The FTSE 100 has spent the entire session in positive territory, but after the apparent outbreak of bullishness last week trench warfare has returned; the index found firm support below 7400, but as was the case last week, it has not been able to move on above 7430. After touching a multi-month high on Friday, the pound has eased off slightly, but
tomorrow’s CPI figure will prove key to direction for both sterling and FTSE, with the latter’s rally likely to be stymied if price growth exceeds expectations.
US markets have begun the day in tentative fashion, and while we have had earnings from Blackrock the day has been quiet so far. The drumbeat of US earnings gets steadily louder however, with more bank earnings tomorrow. Friday’s record high on the Dow confirms that the bulls have the upper hand again, now they just need earnings to provide further catalysts for fresh buying.
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