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Positive movement despite US uncertainty

The US's shocking drop in job-creation for December is still being absorbed by the market, while the uncertainty surrounding the Federal Reserve’s taper timeline for 2014 is returning.

Markets have bounced back to a degree and, with corporate earnings kicking off in earnest this week, the focus is very much on the financial sector ahead of full-year reports from the likes of Wells Fargo and Bank of America tomorrow.

Investors have put a positive foot forward in this respect, and the FTSE 100 is benefiting from an increased demand for banking stocks this morning. Barclays' shares have added 2.88%, culminating in a four-month high. The bank has been helped in part by an easing of leverage-ratio rules from some of the world’s top central bankers yesterday.

Morrisons has rebounded from last week’s dramatic sell-off, adding 3.45%. Market participants seem willing to give the retailer the benefit of the doubt that it can turn sales around with its new online shopping offering.

The euro has recovered much of its poise against the dollar on the back of technical buying and weakness in the US currency. The latter was caused by traders pricing in a potential delay to QE tapering in light of the recent jobs number. Oil prices have also suffered as a result of such speculation, leading to decreased demand for some of the big oil companies this morning. Tullow Oil has shed 1.7%.

The pound, on the other hand, seems to find the air a little thin around the $1.65 marker. And with UK CPI due out tomorrow there is reluctance to be too bullish on the UK currency, particularly when there is such uncertainty about the Federal Reserve’s next move.

There is very little macro data due out today. The industrial production index for Italy saw an increase of 0.3% in November month-on-month.

The Dow Jones is currently set to open down 21 points at 16,417.

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