Carney and Draghi to set the tone

Central banker speeches dominate markets’ thinking.

Source: Bloomberg

The much anticipated union of SABMiller and AB InBev has edged closer to being completed with the confirmation of the £44 a share cash offering for the FTSE-quoted drinks company. This is likely to trigger a merry-go-round of asset stripping and reorganisation by AB InBev as it raises financing and pre-empts competition requirements.

Considering the strength of the US dollar especially as speculation over interest rate rises intensifies, we could well see this being the first of many cross-Atlantic shopping trips from US firms.

Cost-cutting measures introduced to maintain market share look to have seriously damaged Sainsbury’s as the food retailer has posted like-for-like sales down by 18%.

TalkTalk’s first effort to gauge the cost of recent security problems has predicted a £30-35 million cost, but the longer term damage to reputation is hard to calculate.

Confirming the markets’ confidence in the housing sector, Barratt Developments has reiterated its intention to pay a record dividend of £200 million as CEO David Thomas confirmed the company’s optimistic outlook for the rest of the year.

Currency traders will once again enjoy the volatility triggered by both the Bank of England governor and the European Central Bank’s president, Mario Draghi, speaking at events throughout the day. Data has driven the FX markets’ expectations that December will see an interest rate rise in the US.

The resurgent US dollar has forced both the pound and euro lower, an action more welcomed in mainland Europe than in the UK.

Ahead of the open we expect the Dow Jones to start 46 points higher, at 17,804.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts

Een artikel zoeken

Form has failed to submit. Please contact IG directly.

  • Ik wens per e-mail informatie van IG Group bedrijven te ontvangen over handelsideeën en IG's producten en diensten.

Voor meer informatie over hoe wij uw gegevens mogelijk kunnen gebruiken, bekijkt u ons Privacy- en toegangsbeleid en onze privacy website.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.