FTSE opens slightly higher, traders watch polls
Fiona Cincotta November 27, 2019 10:22 AM
The dominant news in the UK market remains the election with traders watching polling data closely. Brexit is temporarily off the table until the vote on 12 December. Sterling has been gradually slipping against the USD over the past couple of days but has seen a rally from the 1.283 mark this morning.
Still no China deal but US markets bullish
It is still all about the elusive trade deal in Asian and US markets. We saw the US market close on a high yesterday reflecting extreme optimism on the part of US investors – Axioma’s ROOF score has market sentiment in the 95th percentile, an almost unprecedented level of bullishness on US stocks going into the Thanksgiving holiday tomorrow.
There will be focus today on third quarter US GDP and personal spending but the real action is waiting on whether the Trump administration – and Beijing – can deliver on the trade deal. China industrial profits are down 10% and this was reflected in Shanghai, where the Composite Index was off 0.13% at the close of play today.
All other Asian indices nudged higher. Since the polls on Sunday there has been a lack of rioting in Hong Kong, and the longer the peace holds there, the more cautious buying activity we will see.
Brent crude drops as IEA warns on glut
In the commodities markets Brent crude saw some extremely volatile trading amid high volumes yesterday, bouncing between 63.8 and 63.1 before becoming rangebound around 64 overnight and then dropping sharply this morning. The IEA is warning of an oil glut ahead of the next OPEC meeting on the back of further production from non-OPEC members.
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