The UK markets could barely bring themselves to move after the open, investors perhaps trying to make the most of the sun while it lasts.
The FTSE was effectively flat at the start of the session, unchanged at 7360, just a handful of points adrift of last Friday’s 11 week peak. As for the pound, after being dragged lower by a disappointing wage growth/inflation/retail sales data hat-trick, and subsequent dovishness from Bank of England chief Mark Carney, the currency was unable to regain any of its first half of April momentum in Monday’s early moments.
Against the dollar sterling slipped by 0.2%, with cable the wrong side of $1.40, floundering at a 5 week nadir. Against the euro the pound found itself in a similar situation, down 0.1% and straining to hold onto €1.1401 and avoid a fresh April low.
While there’s not much to speak of in terms of UK economic data this Monday, the week does culminate with the first glimpse at the country’s Q1 GDP reading. And given that analysts are forecasting meagre growth of just 0.2%-0.3%, both the pound and FTSE may struggle to gather any positive traction heading into Friday.
Elsewhere the eurozone got off to a duff start to the week, despite a decent set of French and German flash manufacturing and services PMIs. The DAX dropped half a percent, taking it back below 12500 for the first time in nearly a week, while the CAC shed 0.2% to lurk around 5340.
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