Contracting UK Services Data Weighs on FTSE 100 Market
Following on from yesterday’s weak sentiment, the FTSE struggled to remain in positive territory and by 10am (London time) was down six points at 6041.
Having finally managed to break through the 6000 level earlier in the week, the FTSE spread trading market is looking particularly nervous today.
With this morning’s UK service PMI figures falling back below 50 to 48.9, confirming that the UK economy was contracting, traders’ fears rose that the country was going to fall back into recession.
Rubbing salt into the wounds was the news that, if only for 15 minutes, French government 10-year debt yields fell below the UK’s.
As a result, even with its lower debt rating, the French government could borrow money at a cheaper rate than the UK.
On the equity front, Anglo American announced it is on the verge of selling a 70% stake in its Brazilian iron ore operation, and hopes to raise just over $1 billion for this.
Rolls Royce has celebrated winning a $52 million contract with the US Marines to service their air fleet.
Costain Group posted encouraging figures for the construction sector, with news that it had a £2.4 billion order book backed up with the likely orders for a further £400 million of future projects.
Looking ahead to the US open, at 10am (London time) the Dow futures market currently calling for the index to open six points lower at 13,385.
Of course, an hour before the US opens we will see the latest Non-Farm Payrolls figures, which will go a long way towards dictating how the markets behave.
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Financial Market Comments from Alastair McCaig, Market Analyst, IG Index.
The above comments do not constitute investment advice and Clean Financial accepts no responsibility for any use that may be made of them.
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