By Connor Campbell, Financial Analyst, Spreadex
Little happened to change Monday’s trading landscape as lunchtime approached, with just as little on the horizon this afternoon.
Though still up 0.4% to 0.5% the FTSE found itself sporadically drifting back below 7400 as the morning went on, in large part thanks to the cooling of HSBC's (LON:HSBA)’s gains. While the miners remained perky, and BP (LON:BP) and Shell (LON:RDSa) were boosted by Brent Crude’s Venezuelan 2 month high, the fact that Europe’s largest bank saw its growth contract from 3.7% to 2.3% weighed on the UK index.
In the eurozone the latest inflation reading for July failed to make much of an impact. The flash estimate came in as expected at 1.3%, while the core reading – arguably the more important of the two – nudged a bit higher to hit 1.2%. The euro found little reason to get excited about the data, neither figure being strong enough to push the ECB in a hawkish direction, meaning the currency remained down 0.2% against the dollar and shed its early growth against the pound.
Looking to this afternoon, and though the only data on offer is Championship rather than Premier League – there’s the Chicago PMI and US pending home sales and not much else – that isn’t going to stop the Dow Jones from hitting a fresh record peak. The futures have the Dow opening 40 or so points higher, pushing it above 21850 and leaving it within touching distance of 21900.
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