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The worries surrounding a US rate hike and the impact it could have upon commodity prices have failed to dominate FTSE trading so far. Instead, Europeans look forward to a bumper European Central Bank meeting which could see Mario Draghi shift both rates and quantitative easing in a bid to stave off disinflation and raise growth.
Today, traders can give thanks for a relatively calm day in the markets, as the US holiday brings the expectation of relatively few left field economic releases to adversely impact their trades.
News traders will no doubt be wishing yesterday’s whole raft of US economic announcements were spread across the two days, but for technical traders this provides the perfect opportunity to let the charts do the talking.
With most of the US trader base staying away from the markets, volumes will no doubt be hit, which has the propensity to raise volatility.
Severn Trent today showed that its plan for achieving greater profits amid lower prices was attainable, with the firm cost-cutting and streamlining its way to a pre-tax profit of £281 million in the first half. With complaints falling by 35% and customers now enjoying the lowest combined prices in the UK, it is no wonder the share price has seen a bounce in early trade.
Ahead of the open we expect the Dow Jones to start 67 points higher, at 17,880.