By Connor Campbell, Financial Analyst, Spreadex
There was a rare sight this morning – the FTSE and pound rising in tandem!
There were a few things in play to make sure both index and currency were in the green. For the FTSE, a 3.2% rise from BP (LON:BP) and a whopping near 9% surge from defence giant Rolls-Royce (LON:RR) allowed it to climb 0.7%, once again putting back above 7400. As for sterling, a far better than forecast manufacturing PMI – the figure came in at 55.1 versus the 54.4 expected – allowed the pound to push 0.2% higher against the dollar, keeping it above $1.32, and 0.4% against the euro.
In the eurozone the DAX and CAC found themselves up 0.5% and 0.4% respectively, in large part thanks to the euro’s own dip. The region’s manufacturing PMIs erred on the disappointing side, with the eurozone-wide reading just under forecasts at 56.6; its Q2 GDP flash estimate was strong, however, coming in as expected at 0.6% (for context, the UK managed just half of that growth).
Looking to the afternoon and the Dow Jones is set to start at yet another all-time high, the futures having the index cross 22000 with a 110 point surge. A stagnant core PCE price index, and a fall in the ISM manufacturing PMI, isn’t much to look forward to; a post-close update from Apple (NASDAQ:AAPL), iPhone 8 news permitting, could be.
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