Market gains ahead of ECB Rate Cut
Trading Floor News May 1, 2013 7:05 PM
<p>A good start to the day for the British economy as traders showed optimism in anticipation of a continuation of monetary stimulus from the US […]</p>
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A good start to the day for the British economy as traders showed optimism in anticipation of a continuation of monetary stimulus from the US and a rate cut in Europe this week. The Bank of England deputy governor Paul Tucker stated the first-quarter economic output data suggests Britain’s economy may be healthier than previous figures suggested.
FTSE 100 is seen opening up 0.29% higher this morning. The DAX is up 0.51% and the CAC 40 is down 0.31%
UK stocks opened with mild gains this morning, driven in part by gains seen in the US overnight and led by mining stocks as they rebounded from yesterday’s losses. Chilean copper miner Antofagasta was a strong riser early on after seeing production rise 12.8% in the first quarter.
Other resource stocks including Randgold, Fresnillo, Vedanta, Rio Tinto and Polymetal were also making gains, shrugging off the disappointing Chinese economic data, as hopes about continuing monetary stimulus from the Fed this evening and a possible rate cut in Europe tomorrow improved the outlook for demand. However, sector peer ENRC was trading lower on reports that the UK Listings Authority has launched an investigation into potential breaches of takeover rules.
Looking at economic data the GBP Purchasing Manager Index Manufacturing is released at 9:30 and the USD ISM Manufacturing at 3pm followed by the USD Federal Open Market Committee Rate Decision at 7pm this evening.