FTSE re-enters twilight zone

In mid-morning trading the FTSE 100 is up five points, as stronger-than-expected jobs data has triggered rate-hike fears.

For the FTSE, good news is once again bad news as the surprise drop in unemployment has triggered fears the Bank of England will increase rates sooner than expected. Falling unemployment and inflation is a dream scenario for Mark Carney; as the cost of living is declining it leaves the door open for possible tightening of the monetary policy. The Monetary Policy Committee has voted to keep quantitative easing and interest rates unchanged but, given the improvement in the UK economy, that may not last forever. 

BHP Billiton ramped up production of copper, coal and iron ore. The world’s largest miner has become more selective about new projects. 

Software company Sage is bucking the trend after the firm stated it is on track to meet its target of 6% organic revenue growth by 2015. 

In the US we are expecting the Dow Jones to open 24 points lower at 16,390 as IBM missed revenue expectations after the closing bell last night. 

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.