Dow Jones Set to Open Lower Ahead of US GDP Report
Financial Market Comments from Anthony Grech, Head of Research, IG Index.
In mid morning trading, shares in London are feeling the pressure again.
It is the big miners doing the damage to the FTSE in this morning’s trading, with the likes of Rio Tinto and Xstrata off by around 2.5%.
We’ve seen some nervous trading this week amongst blue chips and anticipation over this afternoon’s GDP report from the US is doing nothing to quell this.
In the main it seems that the gains over the last couple of weeks having been driven mainly by hopes for further central bank support. It now feels as if investors are beginning to question whether stock markets have once again got at least a little out of step with the fragile economic recovery.
Looking ahead to the US open, we are expecting the Dow Jones to open down around 50 points from last night’s close.
With a slew of major economic data due out this afternoon, US GDP, PMI and Michigan Sentiment, we could be in for a volatile end to the week.
At the moment it does feel as if shares could come under further pressure as the day goes on.
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Good Luck!
DB
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October 29, 2010 No Comments