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FTSE steady ahead of US jobs report

by LLB Editor
5th Feb 21 9:28 am

The FTSE 100 made a steady start on Friday, putting it on course for a solid if unspectacular weekly gain which was just what the doctor ordered after a very up and then very down January, says AJ Bell investment director Russ Mould.

โ€œThe markets may well be keeping their powder dry ahead of the US jobs report later with hopes of a vaccine-induced recovery balanced against evidence of the impact Covid continues to have on the economy with German factory orders down sharply.

โ€œThe FTSE itself was somewhat constrained by strength in sterling as the Bank of England indicated yesterday that negative rates were unlikely (and wouldnโ€™t be introduced for at least six months in any case) and predicted a big bounce back in UK GDP.

โ€œWhen the pound rises it hits the relative value of the overseas earnings which dominate the index. Oil prices remained strong, with Brent crude on the cusp of achieving the $60 per barrel level for the first time since the pandemic hit on a tight supply picture.โ€

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