UK equities take a breath
In London equities are standing still, as traders try to figure out their next move in the wake of the strong US jobs report last week. We are currently in no-man’s lands, and traders are neither fearing nor depending on the US Federal Reserve for guidance.
Mining stocks have fallen out of favour with investors after Chinese imports missed expectations. The People's Bank of China is gradually deregulating the banking system but not at a fast enough rate, and the concerns of liquid issues are still looming.
Irish company Tullow Oil ran out of luck in Ethiopia, and after a failed attempt the company decided to abandon its well.
US stocks continue to rally
US stocks have extended Friday’s rally, as investors seem indifferent to the Fed meeting next week. Even if Ben Bernanke begins tapering it will most likely have little impact as traders have accepted that the quantitative easing gravy train is putting on the brakes.
Brent has slipped below the $110 level as profit-taking from last week’s rally coupled with weakening European demand has weighed on prices.
Aussie sees boost
The Australian dollar had a good start to the session after being boosted by Chinese trade figures, but the soft domestic jobs report ensured it stayed below $0.91.