ECB Day
Fiona Cincotta September 10, 2020 8:23 AM
European stocks are pointing to a mostly positive start on Thursday following a strong finish on Wall Street overnight, although caution lingers ahead of the ECB monetary policy announcement.

European stocks are pointing to a mostly positive start on Thursday following a strong finish on Wall Street overnight, although caution lingers ahead of the ECB monetary policy announcement.
Looking ahead attention will shift to the US labour market. Investors will be scanning the market for signs that the US labour market recovery remains on track. Initial claims are expected to slip slightly lower to 846k, down from 881k. The is would represent a slow recovery but at least it still represents a recovery.
FTSE housebuilders
On the FTSE, housebuilders could find support after RICS data revealed that the post lockdown jump in house prices continued in August, with prices surging to a 4 year high. According to the Institute of Chartered Surveyors (RICS) prices soared +44 in August from +13 in July. We still consider this to be a false dawn with house prices likely to come under pressure as unemployment rises. House builders are cyclical, a prolonged recession could drag on this sector.
FTSE Chart
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