The new week has begun with some modest selling, with markets continuing to exhibit the indecisive behaviour that has been the norm throughout September. Compared to other sessions this month, today has been quiet so far, although miners are on the back foot once again thanks to dire figures from China and yet another bearish note on Glencore. The index continues to stand or fall by the performance of its miners, which makes the outlook for the rest of the FTSE’s year quite grim if China fails to turn around soon.
The demise of talks between Vodafone and Liberty Global has added to the downbeat mood, with shares in the former losing 3.5%. Unlike RSA’s shares, which dropped by 20% when its own bid talks were cancelled, the smaller drop in Vodafone indicates that investors remain confident about sticking with the firm even without the benefit of a Liberty Global merger. Nonetheless, the onus is now on Vodafone’s board to come up with a new strategy to enliven shareholders.
We have three Fed members making speeches this afternoon, as the monetary policy stylings of Dudley, Evans and Williams hit newswires. While not noted as the greatest of comedic acts, these three will at least help to build on what we learned from Janet Yellen on Friday, although I suspect their views will be more inclined towards the dovish end than the hawkish end of the spectrum. Ahead of the open, we expect the Dow to start at 16,313, almost exactly where it finished on Friday.