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.