Spreadex Market Update
Election results see FTSE jump past 7,000 as uncertainty falls.
After a frantic Thursday night leading into a more subdued Friday morning the election seems to indicate that conservatives will win the majority with over 326 seats which shocked the markets. The effects on markets were pretty clear as cable rocketed nearly 1% after an exit poll announcement at 22:00 showed that the conservative would win the majority, cable continued to roar upwards and had the biggest one day gain on the dollar since 2009 hitting a high of $1.5524. The FTSE rallied on the news and broke the 7,000 mark as investors had a bounce in their step as the uncertainty of a hung parliament was thrown out of the window.
The housing sector took positively to the news that conservatives would get the nod, creating a sense of relief for estate agents and developers alike, Berkeley Group (BKG) the biggest gainer opening up around 10% at £28.00 on the back of the Tories manifesto to prioritise increasing home ownership within the UK. Taking a quick look across to Europe and the US, European bourses seem to be lifted on the back of the stability of the UK election – the Dax is trading up over 11,450 and seems to be holding more stable than earlier this week. However traders will not be sitting back into the weekend as elections come to a close, as a shift in focus to US data comes apparent and more specifically Non-farm employment change at 13:30.
After unemployment claims coming in at 265K and hence 12K beneath expected, there is hope that this will back up a positive Non-farm employment change figure which is expected at 228K. Moreover this figure could cause some disturbances in the market as traders digest whether a better than expected result is actually a ‘good’ result as investors look closely at whether this will affect the fed’s decision on interest rate hikes in the near future.
Finally the Dow futures are looking at opening up around 40 at 17930; expect some volatility with key Non-farm results this afternoon.
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