This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
This evening we will find out if Ben Bernanke is naughty or nice. Recent economic data from the US has highlighted the recovery, but it still seems too soon to trim the stimulus package. The jobless rate in the US has only recently dipped to 7%, and could well be revised upward next month. So I think the US central bank will wait for further proof that the economy can withstand a reduction in the QE scheme. Traders who feel the Fed will leave its policy unchanged are in no rush to buy, but we could see a sharp sell-off if tapering is triggered.
British supermarkets are in the red, which is a worrying sign when we are in the run-up to Christmas. It would appear that Britons are still in a prudent frame of mind, even though economic optimism is on the rise.
BP has had some positive news from the Gulf of Mexico for a change. The oil company has announced a ‘significant’ oil discovery in the region.
In the US, we are expecting the Dow Jones to open 50 points higher at 15,925, as investors refuse to give in to tapering fears.