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FTSE making small gains
In London, the FTSE 100 is eking out a small gain as a lack of negative news from Eastern Europe and a string of positive updates from the US have brightened the mood; the eurozone stock markets are benefiting the most from the improved relationship with Moscow.
The unimpressive services and manufacturing data from the eurozone is fuelling speculation that the European Central Bank will loosen its monetary policy this side of Christmas.
S&P 500 hits new all-time high
In the US, the Dow Jones has broken through the 17,000 barrier and is currently trading at 17,055. With the US economy firing on all cylinders, anybody wondering who will raise interest rates first, the UK or the US, now knows the answer.
The broader S&P 500 has hit yet another all-time high; traders know that quantitative easing won’t last forever so they are getting their values worth.
Sears Holdings has revealed its ninth consecutive loss-making quarter, bringing its total quarterly losses to nearly $3.5 billion.
Chinese data weighs on Copper
Copper is offside after the HSBC survey of Chinese manufacturing dropped to a three-month low. The sector is still expanding but Chinese house prices are falling, and there are concerns over Chinese credit conditions.
Gold has taken a tumble as traders take a risk-on view. The plethora of positive economic updates from the US reinforce the Federal Reserve hawks.
Poor eurozone data punishing euro
The US dollar has taken a breather in the wake of the last nights rally. Even though two members of the Monetary Policy Committee voted in favour of raising rates, I suspect the US will be first of the two nations to increase interest rates. Strong jobless and manufacturing data from the US suggests the Fed will be the first to pull the trigger.
The euro is still reeling from the underwhelming PMI reports this morning; the single currency is getting it in the neck from a crumbling eurozone and growing US economy.