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.
Traders have spent much of the week waiting for today’s economic figures and, now that they’re out, a sense of anti-climax has shrouded the trading floor.
Hard morning for FTSE
The FTSE struggled this morning due to an increase in the country’s current account, coupled with a disappointing business investment where expectations were maybe set a little too high following the outperformance of the last three quarters.
Doing nothing to help was the continuing weakness of energy suppliers Centrica and SSE, both ruing Ed Milliband’s comments earlier in the week and ensuring his name is scrubbed from their Christmas card list.
Thomas Cook has been left looking like the poor cousin due to comparisons with TUI Travel's figures.
Day for both bulls and bears in US
US markets have spent the week waiting for today's tranche of US data, and, with unemployment claims better-than-expected and quarterly GDP figures softer, ammunition is there for both the bulls and the bears.
Markets have been playing a guessinCENTRICg game as to the US Federal Reserve’s strategy for some time, and today's data will do little to clarify the picture.
In an effort to claim some of the attention for the corporations, Facebook has broken through the $50 level. This now represents a 106% increase in the last three months.
Gold gives back gains
Yesterday’s charge higher in the US markets saw gold add $70, however more pessimistic outlooks for the precious metal in both Asian and European trading sessions have seen more than half of those gains given back today.
Wheat continues to be the commodity on a charge, and the recent support looks very much like a double bottom. Confirmation that Chinese demand is imminent could convince the markets that this is more than just a bounce.
GBP/USD hanging on
GBP/USD has drifted lower following the release of both US and UK GDP figures and is just about hanging onto its 1.60 handle. Having added 100 pips in the last couple of months, momentum looks a little shaky as markets debate whether or not to give a little back.
Once again the USD/JPY is charging towards the ¥100 level, but with a more meandering style it looks less than convincing that this is the time it will finally succeed.