It’s been a pretty quiet morning for the markets, a moment of calm before the onslaught of data and Brexit news that fills the rest of the week.
Despite cable’s gains eroding as lunchtime approached; the pound halving its early growth against the euro; and a 1.5% rise from Brent Crude, the FTSE still gains any momentum this Monday. Instead the UK index remained the wrong side of 7550, hampered by a 21% plunge from medical devices firm ConvaTec (LON:CTEC) after it warned its full year revenue would be lower than forecast.
While most of the eurozone indices nudged a tad higher, with the DAX managing to hold about 13000, the Spanish IBEX struggled this Monday. The index fell 1% as it was revealed that the Spanish government have given Catalonia another 3 days to clarify whether it has declared independence or not. The ongoing uncertainty surrounding the situation is also dragging the euro lower, with the currency slipping 0.2% against both the dollar and the pound.
Looking to this afternoon and the Dow Jones is expected to flirt with 22900 once the bell rings on Wall Street. The Dow has been in a truly remarkable form since the start of October, adding 500 points in the space of just over 2 weeks, a run that is especially impressive given the increasingly hawkish position held by the Federal Reserve. In terms of US data, there’s not much on offer, with the Empire State manufacturing index (expected to fall from 24.4 to 20.3 month-on-month) the only number of note.
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