Equity traders were secretly delighted with the slight increase in unemployment; the jobless rate ticked up to 7.2% when some investors were convinced it would drop to 7%. As the unemployment rate moved away from the Bank of England’s target, interest rates will remain rock bottom for the foreseeable future. Mark Carney can’t win them all; yesterday the inflation rate dipped below the BoE’s target, so it is hardly a shock that unemployment has edged higher. Overall the governor must happy with himself.
Homebuilder Galliford Try has continued its three-year winning streak after posting an 18% rise in first-half profits; the Funding for Lending scheme has been kind to the homebuilder, which in turn is treating its shareholders to a 25% rise in dividend.
Mining stocks got off to a rocky start as traders are still wondering what is in store for China after its central bank withdrew billions of yuan from the interbank market. If China’s credit market deteriorates, who will replace them as the largest minerals importer?
Our grey market in the Poundland IPO has seen an increase in interest. The group plans to float on the stock market and our clients are currently speculating that it will have a market capitalisation of £830 million.
In the US we are expecting the Dow Jones to open five points lower at 16,125 ahead of the Federal Reserve minutes this evening.