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.
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.
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.
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Written By: City Index
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