UK Employment Data Boosts GBP/USD Ahead of Cameron’s Speech on Europe
In mid-morning trading, the FTSE has risen once more, up 10 points, boosted by strong earnings from tech giants Google and IBM.
Bulls should be pleased with their performance so far in 2013. Although January is not yet done, we have a rise of nearly 5% for London’s leading index, an excellent achievement when you consider how uncertain things looked at the end of 2012.
While the UK has been absorbed by the Prime Minister’s speech on Europe, the GBP/USD spread betting market was given a boost by an improvement in UK unemployment figures, although seasonal effects probably contributed to the growth.
In corporate news, TUI Travel is down more than 4% after majority shareholder TUI AG decided that a deal was not to its taste at current levels.
Having said that, speculation about an offer is likely to return once the six-month exclusion period expires.
Tech earnings remain the focus for the US sessions, as investors gear up for the latest set of Apple numbers, which will emerge after the market close.
With US economic data light today, expect most of the session to be a ‘wait and see’ period, even given the strong start provided by Apple’s fellow tech stocks.
Ahead of the open, we expect the Dow to start up 40 points at 13,752.
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Financial Market Comments from Chris Beauchamp, 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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