AM Analysis
Asian stocks advanced overnight
Asian stocks advanced overnight whilst Japanese equities were weighed down by a strengthening Yen. After yesterday’s reports which showed China’s central bank started to drain funds from the money market, investors remained anxious in case the tightening goes too far and hurts economic growth.
Sterling remained rang bound overnight as investors wait for UK jobless figures and the Bank of England’s meeting minutes to help shed new light on monetary policy. The FTSE is indicating a 15 point lower open as sluggish conditions continue.
Gold extended its decline ahead of Federal Reserve meeting minutes which could show policy makers backing further stimulus cuts. Gold has continued to fall from the highest level in more than three months as investors reduce their holdings in the precious metal.
– Lee Mumford
PM Analysis
Equity markets have now gone some way to reverse earlier losses
Equity markets have now gone some way to reverse earlier losses and are staging an assault on yesterday’s highs ahead of the Fed minutes. In spite of sellers seeming to have the better of things this morning, the US open has brought with it a reinvigorated appetite for risk. The S&P 500 gained 0.35 per cent to close in on all-time highs, a move that sends a bullish tone through most dealing desks. The FTSE 100 is some 10 points higher from yesterday’s close, now 40 points higher than lows printed earlier in the session.
Helping things along was a rumour that bankers are working on a deal to sell MRW.L to private equity funds, sending the shares up over 4 per cent shortly after the story broke. The market is normally very quick to adjust prices in line with new information, with MRW.L story being no different today. Traders will watch volume and price action carefully to gather the full impact by the European close.
– David White
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