The FTSE 100 has rebounded this morning with the index higher by around 20 points. The pound is fairly mixed on balance, but showing a notable drop of 0.7% against the Yen, with the Japanese currency rising firmly across the board.
Gold stocks lead the gainers
The best performing stocks on the leading UK benchmark are Fresnillo (LON:FRES) and Randgold Resources (LON:RRS) with shares in both rising by around 2%. Continued uncertainty surrounding the Trump administration’s ability to implement their proposed fiscal stimulus has seen Gold futures rise in recent sessions and the price of the precious metal is currently testing its 2017 high and providing a boost to both Fresnillo and Randgold Resources’ stock. Other stocks rising this morning are Rolls-Royce (LON:RR), WPP (LON:WPP) and Pearson (LON:PSON) as the UK blue-chip index is outperforming its European peers. Financials are one of the worst performing sectors with Old Mutual seeing its recent woes continue today with the stock falling to fresh lows below the 200 level. The situation in South Africa continues to weigh on the firm with the Rand this morning depreciating further against most major crosses. Royal Bank of Scotland (LON:RBS), Barclays (LON:BARC) and Standard Chartered (LON:STAN) are also in negative territory at the time of writing.
Construction growth cools
Following Monday’s softer than expected data for the UK manufacturing sector, this morning has seen further disappointment with the construction equivalent missing forecasts. A PMI reading of 52.2 for March marked a 30 basis point drop from the 52.5 print seen in February and marks a second successive day of below expected data. Tomorrow the Services PMI will be released, in what is the most widely viewed of the trio and further disappointment there would add weight to concerns surrounding the economy. Having said that the market reaction so far this week has been fairly muted and whilst the data so far has been below consensus predictions, it is still strong enough to not warrant any undue concern. Both the manufacturing and construction releases still marked expansions and it would take a far greater deterioration in the coming months to suggest that the UK economy is at risk of a significant slowdown.