FTSE Spreads Cautiously Rise Ahead of US Non Farm Payrolls
Financial Market Comments from Anthony Grech, Head of Research, IG Index.
In mid morning trading shares in London have made a cautiously positive start as everyone awaits the latest US unemployment data.
The FTSE 100 has been lifted by around 20 points so far today with a lot of the gains coming from the mining sector.
The Australian government has scaled down the levels of tax on mining profits giving the likes of Xstrata a boost early on but this is still relatively modest, reflecting the bigger concerns investors still have about worldwide recovery.
Overall, the market still looks decidedly unhealthy after the slides seen in the last couple of weeks. The risk remains that brief rallies will end up being just that and will be viewed as an opportunity to sell into strength rather than a sign of confidence returning.
Looking ahead to the US markets, we are seeing little change to the Dow Jones in overnight trading. It is highly likely that this will be different by the official open as the latest US Non Farm payroll data is revealed an hour before trading resumes on Wall Street.
Expectations are for a loss of around 125,000 jobs in the US economy in June, barring any pleasant surprise in the release.
Bearing in mind that US markets are closed for a holiday on Monday it could well be a downbeat finish to the week with investors reluctant to open up any new positions ahead of the long weekend.
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Good Luck!
DB
The above comments do not constitute investment advice and Clean Financial accepts no responsibility for any use that may be made of them.
Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.
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