In mid-morning trading the FTSE 100 is broadly unchanged as the US jobs at lunchtime has traders sitting on their hands.
The non-farm payrolls report provides a welcome distraction from Greece, and there is little activity in early trading. The monster number from lasts months’ jobs report is still fresh in traders’ minds, and as we enter the second half of the year the thought of an interest rate hike from the Fed draws nearer. Dealers are already on edge because of the Greek situation, and they are only too happy to sell their positions at the first sign of danger, and that is why we will see little buying in the run up to the numbers. Greece may be out of the spotlight for the time being, but it should not be forgotten, and this weekend could be the end of the line for Greece and the euro.
Shares in Persimmon have pulled back this morning as traders booked their profits after the homebuilder delivered a healthy first-half update. All the signs are pointing in the right direction for the company, and the dip in the share price will provide a buying opportunity for those who are not already long. The runaway success of Persimmon’s share price since the recession is impressive even by housebuilder’s standards, and the low interest rate climate will fuel further growth.
We are expecting the Dow Jones to open 40 points higher at 17,800, as traders get ready for the jobs report at lunchtime. By and large the unemployment data from the US has been positive, but traders are still not fearful of an interest rate rise – which they should be. This is the last trading session of the week for the US, and dealers would like to square up their books ahead of the Greek referendum at the weekend.
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