FTSE 100 Eases Lower Ahead of US Reporting Season
Stocks have got off to a slow start this morning, with the FTSE 100 easing 15 points lower after last week’s rally.
Traders have put the Non-Farm Payroll numbers and the fiscal cliff behind them, at least for now, and are looking towards the US reporting season.
Tomorrow, US aluminium producer Alcoa will get the ball rolling with its latest set of results.
Since equity markets are currently at such high levels, stocks might come off quite quickly if the reports come in below expectations.
For UK shares, the banking sector is the biggest winner today, up over 1% as investors react to the new capital rules from the Basel Committee.
You might think a set of rules that curtail a bank’s activity would have a negative impact on its share price, but traders have welcomed the news as increased regulation leads to a more stable banking sector.
Looking at the US index futures, we are currently looking for the Dow to open 40 points lower at 13,395.
A leading Republican politician, Mitch McConnell, has stated that spending cuts must be the focus of the next round of talks.
US policymakers took a leaf out of the Europeans’ books by putting off their fiscal problems for a while, but will markets get tired of this attitude?
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