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Over the weekend the World Bank lowered its growth forecast for Asia, with China's growth projection falling from 8.3% to 7.5%. Europe’s apparent inability to drag itself into a healthy recovery, as well as its dependence on others, underlines the importance of Asia. However, this morning's Sentix investor confidence figures highlight just how optimistic European investors and analysts are, ahead of final-quarter GDP figures for the EU later today.
IG's grey market trading in both Twitter and Royal Mail powers ahead. Clients' buying enthusiasm has seen Royal Mail's anticipated share price rise up to £4, well ahead of the government's expected £2.60 to £3.30 price range. The last time expectations for a company flotation were this high was just before Facebook started trading.
The premium goods end of the market has taken a bit of a thump with this morning’s poor Chinese growth figures, with the likes of Burberry off 2% in early trading.
The news that US politicians have again put self-interest ahead of the greater good of the country by failing to make any progress in sorting out the budget or tackling the debt ceiling will have surprised few. As yet US debt markets have remained calm, but the closer we get to the mid-October deadline the less likely that is to remain the case.
Due to all this political grandstanding the fact that Tuesday is the start of the latest US reporting season has gone almost unnoticed. As ever Alcoa starts the ball rolling on Friday, with both Wells Fargo and JP Morgan then posting. Ahead of the open, we expect the Dow Jones to start 137 points lower at 14,935.