A decent UK jobs report allowed the FTSE to open at its highest level since the pandemic began this Tuesday.
The most relevant figure this morning was the claimant count change reading for the month of May. Instead of adding another 25,000, there was a 92,600 drop in claimants, not far off double the upwards revised 55,800 reduction posted in April.
That latter figure contributed to the unemployment rate for the 3 months to the end of April falling from 4.8% to 4.7%. The average earnings index also surpassed expectations, leaping past forecasts of 4.6% as it rose from 4.3% to 5.6%.
Though the resulting gains for the FTSE were hardly impressive, a 0.2% increase was still enough to push it to its best open since the end of February, i.e. the start of 2020’s pandemic-plunge. The index remains, however, 20 or so points short of yesterday’s intra-day peak.
Elsewhere a 0.6% increase for the DAX lifted the German bourse to a fresh all-time high, while the CAC was pushing for a recent peak of its own as a 0.4% rise left it 5 points off 6,650.
In contrast the Dow Jones remains without momentum, though a prospective 0.1% increase this afternoon would lift it back above 34,400.
There’s a flurry of activity pre-open that will likely alter the Dow’s eventual performance this afternoon. Retail sales for May are set to drop to -0.6% month-on-month, but with the core reading jumping from -0.8% to 0.4%. PPI, meanwhile, is expected to dip from 0.6% to 0.5%.
"Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved."