Already concerned about this afternoon’s Cabinet meeting, the pound unwound a decent chunk of Tuesday’s wage growth rebound following October’s inflation reading.
Unchanged at a 13 month low of 2.4%, failing to meet the forecast 2.5%, the CPI data turned sterling’s shy start into sulk, with the currency shedding half a percent against the dollar and 0.4% against the euro. This, alongside an easing of BP (LON:BP) and Shell's (LON:RDSa) losses as Brent Crude climbed back to $65.80 per barrel, allowed the FTSE to erase its early decline, the UK index returning to 7050 having at one point ducked under 6980.
Yet it feels incredibly unlikely that this’ll be the closing-positions for both currency and index this Wednesday. The morning’s trading is effectively just a distraction before this afternoon’s main event, with the performance of pound and FTSE alike almost entirely contingent on the outcome of the Brexit deal-discussing Cabinet meeting penned in for 2pm.
Elsewhere, the DAX and CAC managed to reduce their initial losses to 0.6% and 0.5% respectively, less than half the decline seen just after the bell. As for the Dow Jones, after last night’s oil issues, the US is going to try and attempt to reclaim 25300 with a 30 point rise when the bell rings on Wall Street.
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."