Friday 30 September 2016

Markets daily top three for Thursday

Mark Taheny

Published 09/08/2016 | 09:45

Photo: Joe Giddens/PA Wire
Photo: Joe Giddens/PA Wire

Here's what's happening in the markets at a glance.

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GBP Continues to weaken amid post Brexit uncertainty

EUR/GBP hit a new 1 month high as it continues to approach the 0.8600 resistance level with investors increasingly concerned about ongoing Bank of England (BoE) monetary easing.  The BoE announced yesterday that it had sought to buy £1.72bn of long dated government bonds on Tuesday but fell short of the target by £52m, raising concerns around the challenges ahead to implement the latest round of quantitative easing.  In other news, a survey released by BoE yesterday showed growth slowing across British business services and consumer spending easing.

U.S. Dollar weakens as US Treasury yields fall

The U.S Dollar weakened yesterday against its peers mainly on the back of a fall in US treasury yields, coupled with non-farm data which showed a fall in productivity in the second quarter. This was despite some positive US Jobs data. Investors eagerly await tomorrow’s retail sales number and Janet Yellen’s speech later this month where markets will hope to get some direction around the Fed’s interest rate policy.

US Stocks pull back amid weak Oil prices

After seeing new intra-day highs on Tuesday the S&P 500 (-0.23%), the Nasdaq (-0.39%) and the Dow (-0.16%) all retreated after Oil prices fell by 1.6% yesterday. There was a surprise crude stockpile build reported by the U.S Government which saw the S&P energy index fall 1.7%.   Trading volume was lower than the recent daily average of 6.45Bn with about 5.92Bn shares changing hands. Yesterday, also saw the U.S government post a budget deficit of $113bn in July, a 24% y/y drop and down from a deficit of $149.2bn in June.

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