A (very slightly) better than forecast services PMI helped lift the pound and hamper the FTSE this Thursday.
Arriving at 54.2 against the 54.1 expected and the 53.8 seen in November, the services reading make a welcome change from the disappointing manufacturing and construction numbers posted earlier in the week. Not that the PMI was without its problems, as Brexit continues to impact and delay businesses’ long-term decisions.
Still, it was positive enough to send the pound 0.2% higher against the dollar, helping cable back towards $1.355. This move quickly erased the FTSE’s meagre gains, leaving the UK index flat at 7670 despite growth from BP (LON:BP) and Shell (LON:RDSa) following a 2 and a half year high-hitting performance from Brent Crude..
While sterling looked good against the greenback, against the euro it struggled, dipping 0.2% as the currency indulged in the eurozone’s latest round of stellar data. Following a strong services reading, the region’s composite PMI reached a near 7 year high of 58.1, a figure so good that even with the euro re-crossing $1.205 with a 0.3% rise the DAX and CAC maintained their own 0.9% and 1% surges respectively.
Looking to this afternoon and the Dow Jones may finally reach the magic 25000 mark. The futures currently have the Dow climbing 0.2% after the bell, a move that would leave the index 25 points shy of that major milestone. In terms of data there’s a preview of Friday’s non-farm jobs report with the ADP figure, expected to rise from 190k to 191k, alongside the final Market services PMI for December, forecast to slide from November’s 54.5 to 52.4.
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.