Miners Boost UK as Chinese Manufacturing Expands
In mid-morning trading, the UK 100 is ten points higher after China posted a seven-month high manufacturing PMI of 50.6.
The news that China’s manufacturing sector is expanding has helped mining stocks, which are the strongest performing UK sector today.
Traders have shrugged off the decision by Moody’s to downgrade the European Stability Mechanism (ESM) and European Financial Stability Facility (EFSF).
Rumours started to circulate about this on Friday, but it comes as no surprise since France was downgraded two weeks ago.
The ratings agencies have been over-active in the last couple of years and UK spread betting investors no longer put as much stock in their opinions.
Greece are in the process of rolling their debt over; by extending the timeframe they have to repay their debts it’s another way of putting it on the long finger.
As we approach the 5900 level, investors’ confidence will be tested, especially with the fiscal cliff issue on the horizon.
The talks are likely to go down to the wire, resulting in the debt ceiling being raised.
Looking at Dow Jones futures, we are expecting the US index to open ten points higher.
The big number to watch out for this week is Friday’s Non-Farm Payrolls report, where we will find out the impact of Hurricane Sandy on the US jobs market.
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Financial Market Comments from David Madden, 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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