US-free afternoon causes bland trading to continue
Reflecting the extent to which recent trading has been driven by the US, an America-free Monday left the European markets with little to do.
The FTSE failed to shake its excessively mild losses as the afternoon went on, the UK index just about dipping from last week’s 4-month highs as it fell 0.1%. A smattering of red in the commodity and pharmaceutical sectors contributed to the FTSE’s muted Monday, as did the pound’s bland rebound.
Sterling climbed 0.3% against the dollar and 0.1% against the euro, taking the currency about $1.292 and €1.142 respectively. More movement will likely be in store on Tuesday morning, as the pound gets its chops around the latest UK jobs report.
As ever, wage growth will be the focus; though the figures don’t quite line up time-wise, news that January’s inflation reading fell to a 2-year low of 1.8% makes the prospect of tomorrow’s average earnings index (including bonuses) hitting 3.5% very attractive.
Things were just as dry in the Eurozone as they were in the UK. The DAX managed to hold above 11300 as it added 10 points, while the DAX crossed 5160 following a 0.2% increase.
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