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.
Friday’s US close: The Dow Jones closed down 208 points at 15,115, the NASDAQ finished finished down 35 points at 3455 and the S&P 500 ended the day down 23 points at 1630.
FX and commodities update: GBP/USD is up 50 pips at $1.5248, EUR/USD is up 29 pips at $1.3025 and USD/JPY is down 16 pips at Y100.28. Brent Crude oil is down seven cents at $100.32, while gold is up $4.90 at $1397.
This morning in London: The FTSE 100 is down 54 at 6527.
Latest news: European markets are likely to continue their nervous stance, as once again the Japanese Nikkei has struggled, falling 3%. Such a heavy day of important economic data will go some way towards guiding the markets, but overall equity volumes being traded look likely to remain low.
Stocks: Banks feature prominently in the Monday morning news, with Barclays’ efforts to look whiter-than-white coming into fresh problems as US prosecutors look into the holdings of the ex-founder of Liberty Reserve. Lloyds appears set to continue asset-stripping with the sale of $500 million shipping loans. Royal Bank of Scotland has handed over further paperwork to the Canadian regulators, who continue to delve into the murky world of interest-rate fixing.
The day ahead: We have a very heavy day of manufacturing PMI figures today, with results due from China, Spain, Italy, the UK and the US. The pre-market tone set by China is not good, with HSBC’s figures coming in below expectations, as the economic health of the country continues to worry traders. All figures as at 8.30am (London time).