Barring a strong move higher in the coming hours the FTSE 100 is set to end the week in the red. However it should be noted that the index remains not far from its all-time high and seems to have been consolidating in an approximately 200 point range, with an up week followed by a down week for much of this month. The pound has also endured another tough week and whilst it is little changed on the day the declines in October against the US dollar are second only to those seen in June immediately after the Brexit vote.
Oil majors in the red
One of the worst performing sectors in the FTSE 100 this morning is energy, with BP and Royal Dutch Shell both experiencing some fairly sizeable selling. Whilst crude benchmarks are slightly higher on the day, they're set for a first red close for the week since the middle of September as some doubts are emerging around the chances of a successfully implemented deal amongst OPEC members to reduce output. Airline stocks are continuing to rise at the end of what has been a good week for International Consolidated Airlines and easyJet, after news broke that Heathrow would be expanded to include a third runway to boost its capacity.
US growth data to set the tone into the weekend
It's been a relatively quiet week on the data front with little by the way of fundamental developments to drive the markets. UK growth in the third quarter exceeded expectations and we have the US equivalent out this afternoon in arguably the biggest data point of the week. However the lull in action this week may very well prove to be a calm before the storm with next week's economic calendar jam packed with major events. There are four major central bank decisions next week from Australia, Japan, the US and UK, the latest manufacturing numbers from China, US and the UK as well as employment figures out of the US, Eurozone, New Zealand and Canada. Political risk could also be set to rise ahead with next week representing the last full trading week ahead of the US election and the ongoing Brexit saga remaining at the forefront of many traders' minds. Market participants may be wise to enjoy the calm and sanguine conditions at present as the coming weeks are likely to throw up several major events that could see wild swings in many asset classes.
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