Afternoon Market Update – 07/12/2016 – by Jaz Singh

December 7, 2016 by

The major market moving data came from the UK this morning, with manufacturing and industrial production coming in surprisingly low. This in turn saw sterling extending its sell off from yesterday’s evening session, with cable finding support at the 1.26 level. Later today MPs shall debate the government’s plans for Brexit which should give us more clarity regarding British financial assets. The overriding driver for European markets this morning has been the opinion that the ECB shall extend its current QE programme. The DAX has reacted positively to this rumour, continuing its gains from the aftermath of the Italian referendum. After breaking through the 10800 region we look to target 11000 to the upside. Also helping European bourses has been the rise in Monte dei Paschi shares after La Stampa reported that Italy shall ask for a 15 million loan for the bank. The reaction in the Euro to this ECB speculation has been relatively muted after the currency bounced off its lows in the immediacy of the Italian no vote. In the commodity complex we find crude tick higher for day, with WTI residing at the $51 handle. This afternoon we have the Canadian rate decision and statement which should provide sufficient volatility until the European close.