Carney conundrum continues

Carney conundrum continues

Mike van Dulken, head of Research at Accendo Markets commented to clients this afternoon:

“Bullishness may have waned, adding to yesterday’s reversal, but equities are well off their worst levels, back closer to break-even for the day. A strong GBP continues to hamper the FTSE, but the currency is back from its highs following underwhelming UK wages growth, sure to compound Carney’s & Co’s policy conundrum of rising inflation and strong jobs versus slower wage growth. Oil has also helped with a FTSE bounce on higher IEA demand forecasts and Venezuela saying output pact extensions are possible. The German DAX is flat with strong gains for Siemens, Merck and Autos (VW, BMW) offset by losses for Linde, Henkel, Deutsche Telekom and Munich Re (hurricane relief bounce over?). The UK FTSE 100 is held back by Miners (weak base metals),  GSK & DGE (strong GBP, broker downgrade), AZN, SHP  (profit taking from recent rally), HSBC & PRU (profit taking after relief bounce) and TSCO (broker downgrade). Helping the index off lows are RDSb & BP (higher oil price) and Barclays (bounce off channel floor, hopes of hawkish BoE tomorrow). The FTSE 100 has bounced back for a bullish re-test of this morning’s 7390 breakdown. The DAX 30 retains its uptrend after yesterday’s break above 12500. After yesterday’s breakout, Dow Jones Futures look to have plateaued around 22100. Gold has found fresh support at $1330, extending its bounce off Aug rising lows.”

Enter your e-mail address to receive updates straight to your inbox

My Newsletter

You can easily unsubscribe at any time by clicking on the unsubscribe links at the bottom of each of our emails
Categories: News
Tags: alert, alerts

About Author