Spreadex Market Update
FTSE continues to strive for 2016 highs whilst gold hits 13 month peak; potentially disruptive non-farm jobs report looms on the horizon
Nearing a 60 point rise the FTSE is achingly close to the year-peak it hit on Tuesday; it helps that, after a minor wobble earlier in the morning, Brent Crude is pushing for its own 2 month high, gradually edging towards the $37.50 per barrel mark as Friday continued. Not only that but the UK miners are now at effective 4 month highs, a remarkable (if, in a broader context, still insufficient) increase from where they were towards the end of 2015.
With the European indices starting the day strong it is now down to the US markets to ensure the week ends on a positive note. However, with the non-farm jobs report still to come sentiment could still shift before the American session gets underway. Analysts are expecting an improvement in the headline figure, from 151k to 195k month-on-month, but with weaker wage growth (forecast at 0.2% against 0.5%) and an changed 4.9% unemployment rate. Investors are clearly feeling cautious ahead of the figures, the Dow futures only up around 0.1% compared to the far more gleeful gains seen over in Europe.
Beyond the global indices gold remains the one, unadulterated beneficiary of 2016’s volatile start, the precious metal hitting a 13 month high this morning as investors look to protect themselves from the multiple macro maladies plaguing the markets. It will be interesting to see, however, if the current gold rush can endure a sustained improvement in sentiment; yet with a potential Brexit looming and China’s economic slowdown showing no signs of, well, slowing down, there are still plenty of reasons for investors to seek something a bit safer as the year goes on.
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