In London the FTSE 100 is in positive territory but market volatility is low as investors are focusing on the UK general election tomorrow. The pro-business policies of the Conservative party would be favoured by the financial markets, but the dwindling lead they have in the polls over the Labour party is causing some concern. It is no surprise that market movements are small on the day before such an important event. Depending on the outcome of the election, we could see a spike in volatility in the next couple of days.
UK house prices rose by 0.4% on a monthly basis, and by 3.3% on a yearly basis, while the consensus was for a decline of 0.1% and a rise of 3% respectively. Home builders such as Persimmon (LON:PSN), Redrow (LON:RDW), Bovis Homes (LON:BVS) and Taylor Wimpey (LON:TW) are higher on the back of it.
The GBP/USD has slipped slightly as traders are gearing up for the UK general election tomorrow. Dealers are anxious ahead of polling day as the outcome isn’t as clear as it once was, and the fall in the Conservative’s lead over Labour is putting the pound under pressure.
We are expecting the Dow Jones to open 6 points higher at 21,142, and the S&P 500 to open at 2430, up 1 point. In terms of economic indicators to look out for, US consumer credit for April will be announced at 8pm, and the market is anticipating a reading of $15.2 billion, down from $16.4 billion.
Brent Crude oil and WTI lost ground over night as the energy market continues to push lower. The oil market has shrugged off the political crisis that Qatar is caught up in, and traders are looking ahead to the US oil inventories report at 3pm, the consensus is for a drop of 3.1 million barrels.
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