UK employment humming along nicely
|In mid-morning trading, the FTSE 100 is 17 points lower, while sterling rallies after yet more good UK figures.
-
UK wage growth healthy
-
Travis Perkins shares collapse
-
Inventory figures & earnings point to busy US session
UK unemployment data has helped the pound to move steadily higher this morning, as sterling buyers continue to creep out from the post-flash crash shelters. The resilience of UK economic data continues to surprise, and means that very real questions now hover over the Bank of England. With sterling-weakness tailwinds apparently driving Britain forward, the bar for a BoE rate cut seems to be getting higher every day. Stock markets in the UK and Europe are weaker this morning, indicating that bullish sentiment remains brittle, but the steady stream of good earnings figures from the US should help maintain forward momentum across markets. Bottom of the FTSE 100 this morning is building firm Travis Perkins, whose dismal performance sits at odds with the general flow of news from housebuilding and the construction sector, while Reckitt Benckiser has had some of the shine wiped off thanks to difficult times in emerging markets. With the pound now seemingly in for some better days, some of the premium in international firms like Reckitt could be trimmed from the share price.
Another action-packed day of US earnings awaits this afternoon, with the tone among companies reporting thus far still tending towards the optimistic end of things. After crude oil’s choppy performance over the past week, the afternoon’s EIA inventory figures will be closely-watched for signs of ongoing improvement in demand. Ahead of the open, we expect the Dow to start at 18,147, down 14 points from last night’s close.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.