Shares Rise on the Prospect of Further Japanese Easing
In mid-morning trading, the FTSE is up ten points at 6164.
The markets have only been open a few hours but already we can tell its going to be a long day.
There is little in the way of economic data this side of the Atlantic and so, with the US markets shut for Martin Luther King Day, we’re expecting low volumes and even less volatility.
Pearson, owner of the FT, has said it on track to post an operating profit of Â£935 million.
However, the publishing group stated that the year ahead will be tough, and stock is down 3% as investors adjust their expectations accordingly.
Pearson aside, the shares spread betting markets are generally being buoyed by the prospect of monetary easing from the Bank of Japan.
With a meeting taking place tomorrow, traders are expecting to see an additional 10 trillion yen in asset purchases.
Closer to home, the Eurozone are meeting today and the new country on the radar is Cyprus.
Given the island nation’s level of financial integration with Greece it’s not surprising that their banks need recapitalising.
Cyprus already has a debt-to-GDP ratio of 90%, which could double if the planned €16 billion bailout goes ahead.
Sizeable as the amount is, it’s hardly going to break the Troika, but it’s yet another sob story for the euro-dollar 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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