Heading into the close the FTSE 100 is down 15 points, as the market drifted between positive and negative territory throughout the day, and the start of US trading has put further pressure on the London market.
UK markets
RBS is leading the UK banks lower after Friday’s euphoria, as the bailed-out bank is considering offloading Ulster Bank. The Dublin headquarter is now in the black so it might be time to quit while they are ahead. Merger and acquisition activity still surrounds the pharma sector. Reckitt Benckiser is hoping to dispose of its pharm division, while GlaxoSmithKline is contemplating spinning off its health unit. Pfizer is due to report tomorrow and the US drug giant is still on the prowl. Meanwhile, if any shareholders need mothering or care it’s the investors of Mothecare; the stock has taken yet another knock as both the finance director and the US suitor walked away from the firm.US markets
In the US, the Dow Jones is down 45 points at 16,914, after disappointing service and housing figures ensured the US trading session got off on the wrong foot. Traders are looking for any excuse to take money out of the equity market ahead of the Federal Reserve meeting on Wednesday. US reporting season continues with Herbalife after the closing bell tonight. The heath food company managed to rally after Bill Ackman’s torpedo presentation, but can its figures make the hedge funder manger eat his words?Commodities
High grade copper appears to be gearing up for an attack on the 330 cents per pound mark as traders anticipate strong manufacturing figures from China at the end of the week. The recent HSBC survey of China came in at an 18-month high, but I doubt Beijing will disagree. Gold can’t seem to get away from the $1300 level. Tensions in Ukraine and the Middle East could provide a flight to quality rush but non-farm payrolls is likely to drive it lower again.FX
The euro is putting up a good fight against the US dollar but it is still drifting towards $1.34. Wednesday will be the acid test for the single currency, when German CPI is released and the Federal Open Market Committee meets. I expect soft German inflation figures will set the tone and the Fed's statement will ensure a move below $1.34. Sterling is eyeing the $1.7 mark but traders don’t have the appetite as this week is more dollar-focused, due to the aforementioned Fed meeting and the jobs report on Friday. The UK’s growth is not to be ignored, however; the pound is expected to continue to hit new multi-year highs versus greenback.
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EUR/USD hovers near 1.0700 ahead of US data
EUR/USD struggles to build on Wednesday's gains and fluctuates in a tight channel near 1.0700 on Thursday. The US Dollar holds its ground following the Fed-inspired decline as market focus shifts to mid-tier US data releases.
GBP/USD holds steady above 1.2500 following Wednesday's rebound
GBP/USD stays in a consolidation phase slightly above 1.2500 on Thursday after closing in the green on Wednesday. A mixed market mood caps the GBP/USD upside ahead of Unit Labor Costs and Jobless Claims data from the US.
Gold retreats to $2,300 despite falling US yields
Gold stays under bearish pressure and trades deep in negative territory at around $2,300 on Thursday. The benchmark 10-year US Treasury bond edges lower following the Fed's policy decisions but XAU/USD struggles to find a foothold.
Top 3 Price Prediction BTC, ETH, XRP: Altcoins to pump once BTC bottoms out, slow grind up for now
Bitcoin reclaiming above $59,200 would hint that BTC has already bottomed out, setting the tone for a run north. Ethereum holding above $2,900 keeps a bullish reversal pattern viable despite falling momentum. Ripple coils up for a move north as XRP bulls defend $0.5000.
Happy Apple day
Apple is due to report Q1 results today after the bell. Expectations are soft given that Apple’s Chinese business got a major hit in Q1 as competitors increased their market share against the giant Apple.