Markets nervy over US results and MPC meeting
A disappointing close on US markets on Friday and low volume from the Independence Day holiday which closes many US markets today is leaving the door open for renewed selling on UK and European markets this morning.
GFT is calling the FTSE 100 to open down 12 points at 4,826. The German DAX 40 is quoted down 20 points at 5,814 and the French CAC 40 is expected to open with a loss of around 23 points, at 3,325.
DIFFICULT WEEK FOR MARKETS
The worse-than-expected payrolls data released on Friday, combined with a generally nervy mood about Europe’e economies and banking system, has set the scene for another difficult week ahead for stock markets globally.
A report in the weekend press of a Goldman Sachs chief economist warning of troubling and challenging times ahead will add to the negative sentiment.
Looking ahead further into the week we have the Bank of England’s rates meeting on Thursday, which could offer more spice than usual after last month’s unexpected vote for a hike by one of the MPC members.
There are voiced concerns over the creeping inflation level, and should we see Andrew Sentance joined by any other members of the panel this week, the prospect of a tightening in monetary policy will come just that little bit closer.
Martin Slaney is director of global dealing operations for GFT.