There wasn’t much going on this Monday morning, with investors arguably looking to later in the week for trading-inspiration.
Despite Brent Crude keeping above $60.50 per barrel – levels not seen since 2015 – the FTSE couldn’t get much of a commodity-boost. Instead the UK index dropped 0.4%, keeping it the wrong side of 7500.
While sterling’s rate hike-eyeing half a percent rise against the dollar contributed to the FTSE’s drop, the index is also being dragged lower by its housebuilders; Berkeley (LON:BKGH) led the charge, slipping nearly 2% after a pre-Budget downgrade from Barclays (LON:BARC), with Persimmon (LON:PSN) and Barratt Developments (LON:BDEV) both falling in its wake.
Over in the eurozone things were pretty dull. The DAX loitered around its all-time high mark, just under 13250, while the CAC slipped from 5500 with a 0.2% decline. In contrast the IBEX maintained a 1.5% rise as it both corrected last Friday’s Catalan independence-induced plunge and celebrated a stellar 0.8% Q3 GDP reading for Spain.
Looking to this afternoon and the Dow Jones is set to dip 60 or so points when the bell rings on Wall Street, forcing it back below 23400. There’s some data for investors to contend with before that, however; the core PCE price index – the Fed’s preferred measure of inflation – is expected to remain at 0.1%, while personal spending is forecast to jump from 0.1% to 0.8% month-on-month.
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