FTSE Rises After Better Than Forecast Employment Figures, Chinese Data

FTSE attempts to push higher following slightly brighter than expected UK employment figures and encouraging Chinese data.

Charts (6)

After a strong finish on Wall Street overnight, European indices are looking less certain with a mildly positive open.

Deal making on Wall Street and vaccine optimism boosted risk sentiment overnight and drove share prices higher in the previous session. Today trades in Europe are looking less certain attempting to push mildly higher, following slightly brighter than expected UK employment figures and encouraging Chinese data.

UK employment data was mixed, but on the brighter side of mixed. The unemployment rate ticked higher to 4.1% in the three months to July, up from 3.9%. Whilst this is a tick closer to reality the figures show that the report isn’t fit for purpose as those 2 million still furloughed still aren’t showing up. The fact that the claimant count (73.7k vs 100k) and the change in employment (-12k vs -125k exp) were better than forecast offers some hope that the labour market could be in a slightly better place than initially feared. The Pound holds gains versus 

US Dollar and has reversed earlier losses versus the Euro.
Boris Johnson’s Internal markets bill has cleared its firth hurdle in Parliament. There was a sense of Brexit déjà vu, but the controversial bill was pushed through to a second reading on a majority of 77. So far the Pound has not been that deterred by the bill advancing indicating that optimism remains that a trade deal could still be salvaged in the coming weeks.

China retail sales turn positive
Figures from China revealed that the economic recovery in the world’s second largest economy continued in August. Industrial output rose 5.6% yoy, its fifth straight month of growth. Perhaps more importantly retail sales grew for the first time in 2020 as Chinese consumers stepped up the spending following the coronavirus crisis. The consumer recovery in China has taken significantly longer to pull through than the industrial recovery, given the way that coronavirus lockdown impacts the economy. However, the data offers optimism that a recovery is possible. The risk on trade is being reflected more in the softer dollar rather than sharply rising stock indices.

Ocado sees sales jump 52%
Ocado reported a 52% jump in revenue for the 13 weeks to August as the coronavirus crisis sparked a huge demand for deliveries. The Q3 growth follows a 27.2% jump in sales in the first half. Whilst a strong lift in demand was on the cards, these levels are impressive. But perhaps what will be of more interest is how the joint venture with M&S is going. It is still very early days with switch on 1st September , however the fact that clients are reportedly responding well to the switch bodes well.

FTSE Chart


More from FTSE 100

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.