Sterling largely shook off the UK’s 27 month low manufacturing PMI as it continued its November-opening rebound.
At 51.1, October’s manufacturing reading was far worse than the 53.0 expected, and an even bigger drop from September’s 53.6. Yet while this did cause the pound to lose a step, the reports that Theresa May has reached an agreement with the EU over UK financial services firms’ access to the European market post-Brexit remained the currency-boosting headline story.
Cable rose 0.8%, leaving the pound just shy of $1.29, while against the euro it rose 0.3% (admittedly half of its initial rally). Now it just needs to come out the other side of the Bank of England’s ‘Super Thursday’ unscathed...
As for the FTSE, the UK index managed to overcome its early drop to climb 0.3%, an increase that once again saw it cross 7150. This came despite some notable losses from BP (LON:BP) and Shell (LON:RDSa), as Brent Crude slid back to $74.30 per barrel on fears of a supply glut, with BT Group’s 10% surge following news of a 24% rise in first half pre-tax profit helping the index ignore its oily issues.
Looking to this afternoon and the Dow Jones is set to resume its comeback after the bell, with the futures suggesting the index will add another 130 points to hit a one-week plus peak of 25250.
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