The FTSE 100 has already seen a new record high today but a poor performance from the banks is hampering further progress. Perennial poor performer RBS languishes at the bottom, down 2.5% after Goldman Sachs sounded a gloomy note on European regulation, downgrading the bank on the way. But the financial sector generally is under pressure thanks to concerns that tomorrow’s speech from the PM will signal a total British exit.
Emerging market fund manager Ashmore is nearly 3% higher this morning despite reporting another difficult quarter. The past 10 years have seen an average drop in January of over 4%, but the following three months tend to be very strong – with US dollar concerns coming to the fore perhaps emerging markets are due a recovery, and thus the shares might be due a repeat of their excellent run in the first four months of 2016.
Weakness in sterling has been the primary means by which the FTSE 100 has notched up its record-breaking run, but it promises to be a fun few days for the pound what with the PM up tomorrow and Mark Carney speaking this evening. The title of the governor’s presentation is ‘Policy Issues affecting the Bank of England’, which effectively gives him leeway to talk on whatever he fancies.
US markets might be shut for MLK Day but those trading sterling crosses have a long day ahead of them.
Ahead of the open, we expect the Dow to start at 19,868, down 17 points from Friday’s close.
The post Brexit tops the agenda appeared first on Every Investor.