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.
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
EUR/USD hovers around 1.0700 after German IFO data
EUR/USD stays in a consolidation phase at around 1.0700 in the European session on Wednesday. Upbeat IFO sentiment data from Germany helps the Euro hold its ground as market focus shifts to US Durable Goods Orders data.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold price trades with mild negative bias, manages to hold above $2,300 ahead of US data
Gold price (XAU/USD) edges lower during the early European session on Wednesday, albeit manages to hold its neck above the $2,300 mark and over a two-week low touched the previous day.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.