Mixed IFO data out of Germany this morning
left markets in lacklustre mood early on, with most traders happy to ‘wait and see’ on equity market direction. The FOMC take no small share of the blame for the general sense of confusion, with most of their membership seemingly intent on delivering daily conflicting messages to the market.If the board of an S&P500 company published contradictory, opaque and confusing messages on a daily basis that led to wild swings in their share price, it wouldn’t take long for the regulators to have their say. Apparently the same standards don’t apply to the FOMC, whose members move global markets with their every utterance. JUST PICK A MESSAGE AND STICK TO IT FOR GOD’S SAKE!
The uncertainty doesn’t appear to be having any adverse impact on Close Brothers
, who see their stock forging fresh 10 year highs this morning after reporting a 20% rise in profits driven by a recovery in their asset management business
. The turnaround has facilitated a rise in the annual dividend, leaving shareholders in celebratory mood this morning.
Afternoon focus will likely fall on US Consumer Confidence
, which is expected to come in around 79.8 (down from last month’s 81.5 measure) as cable continues to hover around the key 1.60 level. Our clients are fairly evenly split on the direction of the pound, as the bulls look to fade Mark Carney’s view that rates will stay on hold for the foreseeable…CMC Markets is an execution only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.