FTSE rebounds on macro-light day

After yesterday saw equity markets aggressively sell off, today has started with a mild bounce lifting the FTSE by five points.

City of London
Source: Bloomberg

Lower overnight inflation figures from China have reflected the same tale seen in all the major economic regions, as the collapse in oil prices keeps the pressure on. The prospect of UK trade balance figures and US oil inventories being released today is still not enough to prevent traders looking a little further into the future.

Tomorrow will see the European Central Bank launch its second tranche of Targeted LTROs, and with bank stress tests now out the way a far more enthusiastic take up is on the cards.

News has hit the markets that BG Group has agreed to sell off its Australian pipeline business for $5 billion. Now that new CEO Helge Lund is in the driving seat further changes could be likely as he sets about changing the company’s direction while also warranting his remuneration.

Ashtead continue to impress the markets with first-half profits up by a third and, the second increase to its expected full-year target, helping shares higher by 6% in early trading. With 80% of its business being derived from its US operations, along with the trajectory of GBP/USD over the last year, it is no wonder the company is so well regarded in the City.

Looking across the London skyline it is difficult to believe, but the looming weather bomb that is expected to hit the UK could further dent the UK high streets’ sales by encouraging a migration to alternative online options.

The Dow Jones once again highlighted its independence from Europe, as no sooner had European equity markets closed it proceeded to add over 100 points. This time yesterday the chances of the Dow hitting 18,000 before year’s end were looking a lot less likely, but this Greek tragedy might still have one more twist in the tale. Ahead of the open we expect the Dow  to start 25 points lower at 17,776.  

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