FTSE Fails to Rally Despite Pound Surging on Improved Unemployment Data

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Stock Market Trading

: 13 September 2013

The market is searching for fresh cues following a fairly mild session, meaning that European stocks are set to open pretty much flat this morning.

After the recent rush higher, and with the much anticipated September FOMC meeting scheduled for next week, shares took a pause for breath yesterday, posting small losses across the board.

However, the nature of the breath was very calm with little volatility, representing a certain level of investor comfort at these levels.

For US equities, this was the first loss in eight days, with the Dow Jones falling 29 points to 15,314, and provided a welcome respite for those holding off before dipping their toes back in.

Today, the Syrian debate is likely to simmer away in the background, with market attention being mainly focussed on US retail sales, PPI and consumer confidence data.

The bulls will be hoping for a strong end to a good week.

Stock Market Trading

: 12 September 2013

European equities are set to open slightly higher as the rally soldiers on, except for the sluggish FTSE.

The pound/dollar pair reached a seven month high yesterday as jobs data added some more sparkle to an increasingly rosy picture in the UK.

Osborne doubters are starting to lose their speech as his policies seem progressively more justified.

Unemployment in the UK fell to 7.7%, down 0.1% from the previous quarter, resulting in the pound being bought in the belief that interest rates will rise sooner than the 2016 guideline issued by Mark Carney.

The FTSE didn't see the same merit in the figure and remained unchanged on the day.

Whilst the S&P and Dow maintained the upwards surge, the strong weighting Apple commands in the NASDAQ weighed heavily on the US technology index.

Following the release of its two new iPhones, Apple has dropped by more than 5%.

Although we are not out of the woods yet, spirits were somewhat calmer yesterday as President Obama appeared to be in the mood to go along with the Russian proposal.

Syria must now surrender its chemical arsenal.

The sigh of relief spilled over into the equity markets pushing the Dow Jones 161 points higher to 15,348, the third straight gain.

Stock Market Trading

: 11 September 2013

The rally is starting to gain momentum this morning as European stock markets are set to open marginally higher.

President Obama addressed the nation last night to provide some clarity on the subject of Syria.

He has requested that Congress delay voting on the use of military force, as he welcomed Russia's suggestion to remove Syria's chemical weapons whilst under close international scrutiny.

This will be welcome news to CFD investors and the reduced threat of war has been the main spark behind the rally for the last week or so.

On top of this, China has kept the good data rolling off the conveyor belt.

Most recently, the latest retail sales and industrial production numbers impressed, furthering the global rally.

The appetite for risk is certainly present at the moment and so the Dow Jones gained 131 ticks to 15,193.

Stock Market Trading

: 10 September 2013

European equity markets remained in a subdued mood yesterday as the US markets went on the march.

The Dow Jones had its best day in 8 weeks, gaining 144 points to 15,063, buoyed by the news of China's exports and by calming news with regard to Syria.

The longer the Syria issue continues without decisions being made, the less likely a strike appears.

The Russians have suggested voluntarily relieving Assad of his chemical weapons, which would avoid the necessity to use force against him.

This has left US political leaders in something of a quandary and looking a tiny bit smaller.

Historically, volumes are normally on the up during September as bums on seats fill the financial districts following the summer break.

This time around however, many investors are waiting for resolutions to several key issues including tapering, Syria and the US debt ceiling.

As a result, we may continue to see exaggerated volatility until the volume returns.

Stock Market Trading

: 09 September 2013

Stock markets in Europe are set to open marginally higher as investors look towards the Fed and Syria for further cues.

Trading in the aftermath of Friday's Non-Farm Payroll number demonstrated the confusion in markets at the moment.

Ultimately, the slightly worse than expected jobs number is unlikely to provide the Fed with enough ammunition to change their ploy with regard to tapering.

Investors initially panicked and sold heavily before the bulls digested the implications and spotted a bargain.

A rally ensued to leave most US indices relatively unchanged on the day, with the Dow Jones closing nearly flat at 14,924.

World leaders are still scrapping over Syria, with most of the encouragement for action coming from Senior US officials, but President Obama seems to have failed to drum up as much support as he would have liked. The debate goes on.

By Jonathan Sudaria, 13 September 2013

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