Following stronger than expected Manufacturing and Services PMIs last week, the biggest economic release for the UK this week has provided further evidence that the economy is experiencing few adverse effects, despite the uncertainty that remains around the outcome of the EU referendum. The most recent data for manufacturing production showed a 2.3% rise month-on-month which is far above the previous figure of 0.1%, and is in fact the highest reading for this indicator since August 2012.
FTSE little changed in early trade
The UK blue-chip index is pretty much flat so far today after touching its highest level of the month in Tuesday’s early trade, before a wave of selling saw the benchmark end marginally in the red. The day’s price action bore a noticeable resemblance to several recent sessions, with buyers leading the market higher in the morning’s trade before sellers appear to enter in the afternoon. As far as individual stocks are concerned miners Glencore, Fresnillo and Anglo American are all looking set to add to their recent gains as well as Royal Dutch Shell which has continued higher and is fast approaching its 2016 peak.
Oil adds to gains ahead of DOE inventories
Brent Oil has printed fresh yearly highs this morning with the crude benchmark building on yesterday’s gains after the API inventory report last night showed a decline of 3.56 million barrels over the past week. Whilst not as widely viewed as today’s Department Of Energy (DOE) figure, the API numbers have proved to be reasonably accurate in forecasting this afternoon’s release, and if we see a comparable drop later on then it should provide further support to the oil price which is now looking to firm up above the key psychological level of $50 a barrel.