MARKET UPDATE

At 3.10pm the FTSE is up 0.4% points at 6701.  The FTSE 250 is up by 0.2%. The level of activity has been somnolent in the extreme.  We are waiting for David Cameron to whizz to the Palace and take his leave from HM the Queen and hand over the baton, with HM’s acquisition to Mrs Theresa May.  We are all desperate to find out who has landed the top jobs and whether the constitution of the Cabinet is sufficiently conciliatory to mend many a fence across the political spectrum. How futuristic will the signing of Article 50 (if at all) and who will lead the BREXIT negotiations with sensitivity as well as a sense of purpose. Also the result of tomorrow’s MPC meeting is also fundamental.  Many think that a 0.25% cut is on the cards, as it was so well flagged up by Governor Carney.  I don’t think it is necessary as I don’t have the data at hand.  Also the BOE won’t have that many bullets in the barrel were they to really need them, if it shoots a live round tomorrow.

 

As previously illustrated the FTSE 100 is likely to move modestly reacting to the value of the Pound ($1.3252 – slightly below $1.3307 this morning). A number of companies posted numbers or trading statements today – JD Wetherspoon was up 4% at one time – now up only 2.5%. ICAP and Fenner are unchanged though opening trades were recorded at higher levels. Burberry is up 6% – amazing how share prices react so positively with a change in CEO. Barratt Development has been steady at down 2%. The DOW is currently unchanged.  All eyes on the Palace at 5.00pm!

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