Dow Futures Surge on Democrat Optimism Over Fiscal Cliff Solution
A more energetic-looking FTSE this morning was up 21 points at 5933 by 10am (London time), following encouraging noises from the Democrats over resolving the fiscal cliff issues.
For the fourth time in the last eight trading days the FTSE is trying to break away from the magnetic 5900 level.
However, today’s disappointing RPI and CPI figures have cooled that ambition, certainly for this morning.
Republican house speaker John Boehner will update his party on negotiations today, and it will be interesting to see if his interpretation of the meetings is as optimistic as the Democrats’.
Rolls-Royce has today announced signing a $1 billion servicing contract with Skymark, the Japanese airline.
Petrofac continues to impress the markets with its confirmation that it is on track to report profits up 15% for year end.
Rumours still circle around African Barrick Gold, suggesting that China National Gold is looking to gain a greater exposure to the African market and views it as the perfect vehicle to achieve this.
At 3pm (London time) we will hear an update on the US housing market index and it will be interesting to see if the strong recovery is continuing.
Looking ahead to the US open, the Dow futures have been strong all morning and at 10am (London time) are being called to open up 53 points at 13,288.
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Financial Market Comments from Alastair McCaig, Market Analyst, IG Index.
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