Continuing the push it saw at the very end of 2016 the UK index is already eyeing the 7200 mark, a 50 point-plus rise leaving it within striking distance of that landmark level. For now, at least, investors are ignoring the potentially disruptive events littered across 2017 – most pertinent to the FTSE being March’s triggering of Article 50 and the impending announcements related to the banking sector’s decision whether or not to stay in the UK post-Brexit – to get behind the UK index. Helping the FTSE is the performance of Brent Crude which, at just above $57 per barrel, is at its best price in around 18 months, something that has secured some solid growth in the commodity sector as the New Year gets underway.
The FTSE does, however, get its first 2017-test this morning in the form of December’s manufacturing PMI; analysts are expecting the figure to dip slightly month-on-month, from 53.4 to 53.3. Any negative news will likely be absorbed by the pound, which is sitting flat just above a 2-month, sub $1.23 low against the dollar.
Over in the Eurozone the DAX and CAC were similarly perky this Tuesday, with the German and French indices rising 0.2% and 0.5% respectively. The main data out of the region this morning is the German unemployment change reading, forecast to remain unchanged at -5k.
