FTSE up ahead of Carney guidance

In mid-morning trading the FTSE 100 is up 20 points as traders await Mark Carney’s forward guidance.

Traders wait in anticipation as Mark Carney is expected to move the goal posts for monetary policy. 

The Bank of England governor previously cited a 7% unemployment rate as a trigger point for thinking about raising interest rates, assuming he was buying himself a considerable amount of time; however now the rate is at 7.1% he will be forced to broach the issue. It’s refreshing to see a policy maker go back on his words because things have gone his way for once; however, Mr Carney can’t keep changing the targets as he goes along so he will probably keep his updated objectives vague.

The mining sector is providing the foundations to FTSE 100 gains again this morning, 
as a surprisingly high trade balance from China overnight has put the mineral extractors in demand. A double-digit increase in imports suggests China is still hungry for metals. 

Reckitt Benckiser, the maker of Cillit Bang, has revealed an increase in like-for-like sales but has struggled in some emerging markets. 

In the US we are expecting the Dow Jones to open two points lower at 15,992, as traders take their profits following the Yellen effect. 

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.