FTSE 100 edges back as Standard Chartered falls sharply
|Standard Chartered and mining stocks are weighing on the FTSE 100, which is down 40 points in morning trading.
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Equity rally cools after a good start to November.
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RBA move throws a spotlight on central banks.
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Standard Chartered results provoke profit-taking.
Global growth stocks have taken a knock this morning after their recent strong run, but aside from a couple of result-related falls, it seems like we just have a brief period of consolidation for equities. November, a strong month on average anyway, got off to a decent start yesterday as equities resumed their bullish form of October. With the Australian central bank stepping towards a more hawkish view (or at least, less dovish) and forecasts of a rate increase there being brought forward, attention has been shifted towards central banks, as we gear up for a tapering announcement from the Fed and as possible rate hike from the BoE this week. This does mark quite the sea change from the dominant policy backdrop of the last 18 months, but of course is a signal that things are moving on from the emergency phase, as growth recovers and inflation picks up a touch.
Standard Chartered beat expectations in its results this morning, but after a 24% bounce from the October low to yesterday’s close, investors are relearning the phrase, ‘it is better to travel than to arrive. Still, there was plenty to like in the numbers, even if the outlook was rather cautious. But after the rally of the past month, the bank was on a hiding to nothing really, some investors being bound to engage in profit-taking regardless of the actual figures and forecast.
Ahead of the open, we expect the Dow to start at 35,902, down 11 points from yesterday’s close but still within striking distance of 36,000.
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