The information 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 Bank S.A. 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 and as such is considered to be a marketing communication.
The non-farm payrolls report provides a welcome distraction from Greece, and there is little activity in early trading. The monster number from last month's jobs report is still fresh in traders’ minds, and as we enter the second half of the year the thought of an interest rate hike from the Fed draws nearer. Dealers are already on edge because of the Greek situation, and they are only too happy to sell their positions at the first sign of danger, and that is why we will see little buying in the run up to the numbers. Greece may be out of the spotlight for the time being, but it should not be forgotten, and this weekend could be the end of the line for Greece and the euro.
Shares in Persimmon have pulled back this morning as traders booked their profits after the homebuilder delivered a healthy first-half update. All the signs are pointing in the right direction for the company, and the dip in the share price will provide a buying opportunity for those who are not already long. The runaway success of Persimmon’s share price since the recession is impressive even by the housebuilder’s standards, and the low interest rate climate will fuel further growth.
We are expecting the Dow Jones to open 40 points higher at 17,800, as traders get ready for the jobs report at lunchtime. By and large the unemployment data from the US has been positive, but traders are still not fearful of an interest rate rise – which they should be. This is the last trading session of the week for the US, and dealers would like to square up their books ahead of the Greek referendum at the weekend.