Spreadex Market Update
Cautious Fed sets up Europe with solid start to Thursday, with Bank of England rate vote to come
Following yesterday’s Budget blitz and jobs report double whammy things look slightly calmer for the FTSE this Thursday, the index arguably back on an oil-led leash. Luckily for the FTSE Brent Crude has continued the rather robust rebound it began on Wednesday, the black stuff sporadically pushing above $41 per barrel after having slipped away from its recent peak at the start of the week thanks to a combination of a gloomy OPEC outlook and continued intransigence from Iran over a potential output freeze. That left the FTSE with a half a percent rise after the bell, the UK index once again teasing 2016-highs.
However the UK isn’t completely out of the woods yet in regards to this week’s cluttered economic calendar; lunchtime sees the latest rate vote from the Bank of England’s Monetary Policy Committee, with even the ever hopeful hawk Ian McCafferty expected to remain on the dovish side of things this month. If Carney and co. do follow the lead of the inaction-favouring Bank of Japan and Federal Reserve, something that is effectively guaranteed, cable, which has climbed back above $1.427 after its start of week wobble, may see its minor rebound disappear.
Whilst firmly on the back bench this week the Eurozone nevertheless sees some data this Thursday, namely the region-wide inflation (expected at -0.2%) and trade balance (forecast to fall by €0.8 billion to €20.2 billion) figures. The prospect of this doesn’t seem to have had much material impact on the Eurozone indices, however, the DAX and CAC rising 0.4% and 0.7% respectively.
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