Markets seem to have paused for a breather on Thursday, as there is minimal movement in Europe and Asia. “Investors may well be waiting for the latest US jobs data before deciding on their next trades,” says Russ Mould, investment director at AJ Bell.
“Strong job numbers could strengthen the argument for the Federal Reserve to start tapering its bond buying.
Another key factor which could influence the US central bank to ease its support measures are employment levels. Fed chair Jerome Powell made this clear at last week’s Jackson Hole summit.
“US unemployment claims will be published later today, and tomorrow will see the latest unemployment rate and non-farm employment change,” said Mould.
Back in the UK, the FTSE 100 is trading sideways on Thursday morning at 7,144. BHP, which is now trading without the right to its next dividend, is the biggest faller, down 6.36% at the time of writing.
FTSE 100 Top Movers
Melrose Industries (4.51%), Prudential (1.94%) and Evraz (1.43%) are leading the way on the FTSE 100 during the morning session on Thursday.
The bottom three are BHP (-6.36%), Admiral Group (-4.2%) and BT (-2.46%).
Melrose
Melrose, the cars to planes giant, released a robust set of results this morning highlighting a swing back into the black on the back of a challenging year.
CEO Simon Peckham expressed his frustration about a chip shortage and supply chain problems.
“We have great demand for cars, we just can’t make them,” he told the Evening Standard. “There will be a solution to the chip shortage, but the consensus view is it won’t be cured until next year.”