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.
After the Asian markets set a negative tone early in the day with their reacted to the re-emergence of US quantitative easing, the CAC goes into the close up on the day following the IMF’s public recommendation that France start to ease their aggressive taxing policy and help stimulate recovery.
While the US markets have spent the afternoon’s trading session down, the FTSE has been focused on the Mark Carney’s first inflation report. Over the course of the morning’s meeting he outlined the Bank of England’s shift towards using unemployment levels as a gauge for altering the interest rate. Since the targeted level for unemployment is 7%, which has not been seen since 2009, and levels are currently marooned around the 7.8%, it appears that interest rates are likely to remain at the current low level of 0.5% for some considerable time.
On the corporate front, Randgold Resources have followed in the path of almost all the other precious metal miners by re-assessing the ongoing viability of operations, as the spot gold price has continued to struggle below the $1300 level.
TUI Travel has also had a rough day; in the morning it posted improving figures only for the volatile currency markets to wipe out those gains.