"The FTSE 100 leads the way higher in early trade, coming off the back of a concerning jobs report that makes a December rate cut from the Bank of England increasingly likely. Following on from yesterday's US shutdown fuelled optimism the gains seen in Europe this morning look to be a separate phenomenon given the weakness seen in US futures thus far."
"Markets look ahead to a vote in the House tomorrow which should ultimately pass the bill to the President later in the week. However, major questions remain for those wondering when we will start to see the economic data roll in given the complexity in collating figures retrospectively. With concerns around the quality of the data given a shift in methodology, will Fed members believe the data is robust enough to inform them around whether to cut rates next month?"
The FTSE 100 rose in early trade as markets reacted to a weak UK jobs report that increased expectations of a Bank of England rate cut in December. Unemployment rose to 5%, the highest in over four years, while wage growth declined, weakening the labour market. Markets priced a 73% chance of a December cut, up from 56% last week, and sterling fell, with EURGBP rising above 0.88 and GBPUSD slipping. European gains look separate from recent US shutdown-driven optimism, and uncertainty over US data quality after the shutdown could complicate Federal Reserve decision-making.
Read at London Business News | Londonlovesbusiness.com
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