FTSE A Touch Higher At The End Of A Grim Week

FTSE A Touch Higher At The End Of A Grim Week

City Index  | Oct 04, 2019 10:12

The FTSE seems set to close a grim week just off the week’s lows as it finds reasons to nudge slightly higher. Changes at the helm of BP (LON:BP) - where the oil firms' chief executive will retire in March to be replaced by the company’s head of exploration Bernard Looney - were greeted with a modest uptick in the share price. With the pound a touch stronger against the dollar most other gainers are the more UK-consumer focused companies like Experian and Rightmove.

Asian markets were in a wait-and-see mode ahead of US non-farm payroll and September unemployment data later today with flows already reduced as China remains closed for National Day celebrations. Not one to do things by half, China will continue the celebrations and market closures into next week and the Shanghai stock exchange will remain closed on Monday.

Sterling, dollar look to US jobless data later Friday

This week’s US factory data pressed the panic button on US stock markets and Friday’s job figures will be key for the next trade direction. According to Richard Clarida, the second-in-command at the Federal Reserve, the probability of a recession is not high if the Fed can set the right interest rate policy. The selloff earlier this week shows how twitchy the markets are over any slowdown in US growth, so that even a relatively small decline is greeted with panicky selling.

For the moment the dollar is weaker again against most majors, including the pound, which is a little bit more stable this morning.

Yesterday’s signs of a recovery after the PM presented his latest Brexit plan were quickly doused with cold water by sceptical comments from the EU negotiators, unconvinced that Boris Johnson’s proposal will hold water. Still, the pound is marginally higher on the week, if for no other reason than hopes that the no-deal option will remain off the table.

Disclaimer: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient.

Any references to historical price movements or levels is informational based on our analysis and we do not represent or warrant that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, the author does not guarantee its accuracy or completeness, nor does the author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

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