It looks like the first week of 2018 is going to end on a high, with the European indices in a very good mood ahead of a promising US session.
After a slow open the FTSE decided to follow the lead of its peers, rising 25 points to hit a brand spanking new record peak of 7720. The index’s rise will be in part because the pound has failed to really get off the ground this Friday, falling 0.1% against the dollar while remaining near a 5 and a half week low against the euro.
Over in the Eurozone there was even more goodwill, with both the DAX and CAC continuing their 2018 comeback. The German index jumped nearly 150 points as the morning went on, crossing 13300 for the first time since mid-December; the CAC was almost as strong, surpassing 5450 after rising 0.8%. The indices were aided by the euro dipping 0.1% against the pound and 0.2% against the dollar, as the eurozone core flash inflation reading for December came in lower than forecast at 0.9%.
Turning to this afternoon and this Friday’s main attraction is still to come: the first US non-farm jobs report of the year. Analysts are estimating the headline figure will fall from 228k to 190k month-on-month, though Thursday’s beefy ADP reading has perhaps slightly shifted expectations. The unemployment rate, meanwhile, is set to remain unchanged at 4.1%, with wage growth nudging up from 0.2% to 0.3%.
The prospect of all this has the Dow Jones more excited than the dollar – the greenback has been remarkably unreceptive to the good news coming out of the US of late, be it Trump’s tax reform triumph or the week’s decent data. Not that the Dow is too bothered; the dollar’s softness has the index facing yet another all-time high, with the futures pointing to a 25150-grazing 80 point rise after the bell.
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. In relation to fixed odds, Spreadex Ltd is licensed and regulated by the Gambling Commission under licence number.