Stacks of Stocks
The Pound has recovered slightly from the losses of late last week and early this week against the Dollar, heading back over the 1.5500 mark during the day yesterday. The story against the Euro was similar as we saw a slow, steady appreciation from the open until close.
Stocks are dominating the market news at the moment for a couple of reasons. One, much speculation still surrounds the direction of the Chinese stock market. There seems little reason for investors to return aggressively and I read this morning that a principal supplier of market indicators to investors forecasts that another significant bout of losses are expected by him and his team. The supplier said, “Markets bottom on bad news, not good news. You want to have the last seller sell. We got good news at the recent low. The rally is artificial”.
And two, European stocks have risen after there was news regarding some significant mergers and acquisitions happening as well as some positive reports from earnings data of European companies.
The UK GDP figures due out this morning could show an increase of around 0.7%, which would be a real step up from the paltry 0.4% recorded for Britain at the beginning of the year. We will be able to view the detail on which parts of the economy are performing well and which are not. Perhaps there is a case for the results to feed into interest rate rise pressures on the Bank of England and certainly, given that we go first of the major economies’ GDP figures, a glimpse into the overall state of the global economy could be inferred. Be careful about being too optimistic, though, as the GDP measurement today is a first estimate, meaning around 60% of the total data is not included.
Today, aside from the UK GDP figure due today at 09:30, we have a range of US data from Services Purchasing Managers’ Index and Consumer Confidence to a retail sales indicator and manufacturing index indicator as well.