Monday's Pre-Market Outlook

Stocks look to open positively this morning here in London, taking their cue from a continuation of Friday’s late rally. Asian bourses, too, are closing out their sessions higher, with better-than-estimated Chinese exports compounding investors demand for risk following the positive jobs number. Shipments rose 12.7 percent from a year earlier.

Euro zone Q3 GDP year-on-year is due to be announced later today and will be important to investors seeking confirmation of an improving environment in which to allocate. European debt and stocks have been yielding strong returns since the depths of its crisis and could become more attractive if proactive central bank support became matched with an across-the-board steadying of output.

Meanwhile, Gulf Keystone (GKP) has reported to the market this morning that claims by Excalibur have been dismissed and all issues have been decided in favour of the defendants.

-- by David White

PM Analysis -- A quiet morning in general with European indices down
A quiet morning in general with European indices down slightly as a whole and US futures remaining steady; this could just be the calm before the storm however as the FOMC meeting approaches.  When tapering will once again cause a speculative frenzy in the markets.  Budget talks remain the main talking point in the US markets where both sides are hoping to reach an agreement on automatic budget cuts, signalling the end to a three year ordeal.  The compromise is thought to ease $100-$200 billion in automatic cuts for up to two years.  It would also be a good show of bi-partisan politics after the catastrophic failure earlier this year leading to the government shutdown.

UK markets traded down this morning on the back of mining companies which were adversely effected by Chinese import data being weaker than forecast.  There is a fear among investors that Chinese’s slowing imports may be a continuing trend and could cause the FTSE to slump as the year draws to a close.  Mark Carney is scheduled to speak this evening meaning volatility could be stirred up by speculators towards the close.

by Alex Conroy

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