Balfour Beatty surprises traders
No news is good news has been the mantra of the markets today. There has been a ceasefire in the war of the words between Brussels and Russia, while dealers have scurried from their foxholes and picked up cheap stocks after last week’s trail of destruction.
The tense standoff in Eastern Europe is far from over and traders are making the most of this brief period of stability.
The mining sector has extended its gains after positive corporate updates and solid metal prices.
The IG binary bet on the Scottish referendum outcome now suggests an 85% chance of a ‘No’ vote. The pro-union side benefitted from Alistair Darling’s performance in the debate against Alex Salmond.
US markets extend last week's rally
In the US, the Dow Jones is up 47 points at 16,600. The US reporting season is winding down but a cooling of tensions in Ukraine and a sense of stability in the Middle East has extended Friday’s late rally.
Copper above 200-DMA
The sting has been taken out of oil as the US intervenes in northern Iraq; stability has been brought to the region.
Copper is hovering above its 200-day moving average of 316 cents per pound. Industrial production figures from China during, the week, will dictate the demand for the red metal, as Chinese manufacturing slips from its 18-month high.
AUD/USD finds support
The Australian dollar hasn’t recovered since the sudden jump in unemployment was revealed last week. The Aussie has found support at $0.9260, but the strength of the greenback has overshadowed the stability in the Australian economy.
The euro continues to struggle, and no change from the European Central Bank has left the currency in limbo. However, the GDP update on Wednesday could keep the single currency under the cosh. Sterling's losing streak could come to an end this week as traders await the Bank of England inflation report on Wednesday, and they will be keeping an ear out for any hawkish comments from Mark Carney.