The New Year kicks off in familiar fashion, as investors look back at how the UK manufacturing sector closed out 2017.
After briefly crossing 7700 in the pre-market the FTSE slipped slightly after the bell, and now sits at 7670. The pound got off to a perkier start to 2018, climbing 0.3% to lurk above the $1.354 mark, roughly a one month high; it was a bit more sluggish against the euro, remaining unchanged the wrong side of €1.125, its worst price since the end of November.
This fireworks-free open to the year is unlikely to drastically change once December’s manufacturing PMI is released. Analysts are expecting a very minor dip, from 58.2 to 58.0 – that would still leave the figure in a region that, before November’s reading, hadn’t been seen for a fair few years. If accurate that may well put a twinkle in sterling’s eye, in turn making it a tad harder for the FTSE to hit a fresh all-time high.
The Eurozone indices weren’t quite as resilient as their UK counterpart this Tuesday. The DAX fell 0.4%, taking the German index back below 12850, with the CAC shedding half a percent to dip under 5300. In terms of the region’s December manufacturing PMI, the figure is set to be confirmed at a very impressive 60.6, something that is likely to only extend the euro’s barnstorming run against the dollar.
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