Equity markets have regained some of their poise today ahead of tomorrow’s revised Q2 GDP numbers due out of both the UK and US as traders adjust positions ahead of tomorrow’s data release.
They were certainly helped on their way by the surprise fall back in the number of weekly jobless claims to 473k from the expected 490k; however the 4 week moving average of claims is at its highest level since last November, indicating that the employment market still remains weak.
However given that expectations for tomorrow are for a revision of 1% down on the print of 2.4% earlier this month, this looks like nothing more than a technical rebound ahead of tomorrow’s figures and Bernanke’s speech in the afternoon.
With commodity prices rebounding slightly miners are at the forefront of today’s gains with Fresnillo near the top of the leader board with Kazakhmys not far behind after a strong set of interim results. An improvement in copper prices helped it post a sharp rise in half year revenues and earnings.
Xstrata is also doing well after Glencore, the world’s largest commodities trader and owner of a 34% stake in the Anglo-Swiss firm, reported a 42% jump in first half net income.
Near the bottom of the FTSE figures from Segro and Diageo have both disappointed, with developing markets driving overall growth at the Guinness brewer, but North America and Europe remained weak.
Currencies have pretty much traded the same way with the single currency regaining some ground against the dollar while the yen has pulled away from its recent highs on concern that tomorrow’s statement from the Fed meeting at Jackson Hole may contain some unpleasant surprises for yen bulls.
The pound has also garnered some support after GBP CBI Reported Sales for August posted a surprise increase to 35, up from July’s figure and way above expectations of 18 predicted by economists. However we would need to see a move above 1.5620 to signal a move towards 1.5700.
Gold continues to remain well supported pushing briefly above $1,240 as it looks to regain the highs seen in June at $1,265.
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