GDP miss = GBP dis = FTSE bliss

GDP miss = GBP dis = FTSE bliss

GDP miss = GBP dis = FTSE bliss

Mike van Dulken, Head of Research at Accendo Markets commented to clients around midday:

The FTSE100 index trades fresh highs getting a boost from worse-than-expected first quarter UK GDP growth (construction weak, bad weather) which adds to weak UK inflation and Wage growth, as well as surprisingly dovish commentary from Bank of England Governor Carney. This has resulted in a near-evaporation in expectations for a UK interest rate hike in May (22% probability vs 96% just two weeks ago). The 1%+ drop for GBP, vs both USD and EUR, however, is a silver lining for equity traders, flattering the value of UK blue-chips’ international profits and dividends, helping their share prices higher.

Contributors: FTSE +50pts, with the biggest positive contributions from RDSB, (still high oil price, weaker GBP), ULVR/BATS/DGE/RB/IMB (weaker GBP), HSBC(breakout, results next week), AZN/GSK (rebound), AZN (drug news). The major drag today comes from RBS (Q1 results), BHP/GLEN (stronger USD hindrance on metals offsetting benefit of weaker GBP, slowest China industrial profits growth in 21 months) and LLOY (RBS read-across).

Technicals: The FTSE 100 extends its breakout from 7400, extending its retrace of the ground lost late-Jan/early-Feb from 2018’s 7800 record highs. Three-month Bullish inverse head and shoulders reversal in motion?”

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Categories: Analysis, News
Tags: FTSE

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