By Connor Campbell, Financial Analyst at Spreadex
Nothing really changed as the morning went on, the markets settling into a post-Fed, earnings-stuffed pattern.
The FTSE was completely inert, stuck effectively unchanged just below 7450. That is an improvement, however on where it was in the early moments of the session, where the weight of sterling’s gains had sent it careening into the red. Between cable’s 10 month highs following yesterday’s dovish Fed statement and a mixed set of corporate earnings that has AstraZeneca’s (LON:AZN) 16% plunge on one end and Diageo’s (LON:DGE) 6.7% surge at the other, it seems there is just a bit too much for the FTSE to process, leading to its rather lifeless performance.
Even though the euro has significantly cooled this Thursday, now flat just above 1.17 against the dollar and down 0.4% against the pound, the DAX is looking pretty glum with a half a percent decline. That’s because, regardless of today’s movements, the euro is still arguably the summer’s biggest winner, tearing chunks off its sterling and greenback rivals.
Having hit a 21700-plus all-time high yesterday evening the Dow Jones looks a bit spent this Thursday. The futures are pointing to a meagre 15 point rise after the bell, though the index could gather steam once a few more US traders are awake. Data-wise it’s the turn of the durable goods orders reading in the spotlight; analysts are expecting a slight increase, from 0.3% to 0.4% month-on-month.
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