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Financial update; 29/10/10

Good morning everyone,

Here is your daily financial update:

This information is brought to you by Imperius Asset Management.

Financial Focus
Friday 29h October Protected content

Unexpected drop in US jobless claims casts more doubt on US Quantitative Easing; US GDP figures out today will give more guidance to the Fed ahead of next week’s meeting; UK consumer confidence survey shows a surprising rise of one point.

London shares are tipped to start lower Friday, while investors adjust positions ahead of the weekend and next week's U.S. Federal Reserve policy meeting. Ahead of the opening, IG Markets is calling the FTSE down 9 points at Protected content , having gained 0.55% yesterday. US markets closed mixed, with the S&P Protected content Nasdaq both adding 0.1% in the last session.

Sterling is slightly up against the dollar and euro, but down against the yen – although this is in line with all other currencies on Friday. Sterling was supported by the surprising rise in the consumer confidence data just released, and now all eyes will be on the US GDP figures out later today.

Gilts may start a bit higher Friday, with uncertainty over the US Fed’s QE measures next week. "We've had a sharp sell-off in the last two days so the levels have invited a few people in," says Marc Ostwald at Monument Securities. UK consumer confidence rose one point in October, largely on an improvement in how consumers view their financial situation over the coming 12 months, the polling firm GfK NOP reported Friday.

Crude prices were lower Friday as the dollar staged a slight comeback against the euro. "The US dollar has strengthened a bit against the euro and that correlates with the movement of oil prices," said Victor Shum of Purvin and Gertz energy consultants in Singapore. Shum said the market was also eyeing next week's US Federal Reserve meeting for indications of the scope of any new US stimulus plans.

Spot gold was down $3.90 at $1340.20/oz, in line with the euro's dip against the dollar. Silver was steady at $24.01/oz, down just 2 cents. LME metals were down after a weak Shanghai open. LME 3-month copper was off 0.7% at $8285/ton and zinc was off 2.0% at $2444. Worse-than-expected Japan industrial output data also played in the market, while traders noted rising copper inventories in Japan.

Index; Value, Change

DJIA; Protected content , -12.33, -0.11%
Nasdaq; Protected content , +4.11, +0.16%
S&P 500; Protected content , +1.33, +0.11%
FTSE 100; Protected content , +31.87, +0.56%
FTSE 250; Protected content , +21.55, +0.20%
Nikkei 225; Protected content , -151.05, -1.61%

FOREX PRICES AT Protected content
Pairing; Value, Change

USD/JPY; 80. Protected content , -0.56%
EUR/USD; 1. Protected content , -0.23%
GBP/USD; 1. Protected content , +0.06%
EUR/GBP; 0. Protected content , -0.31%

COMMODITY PRICES AT Protected content
Commodity; Value, Change

Comex Gold; $1340.20, -$1.90, -0.1%
Brent Crude Oil; $83.43, -$0.16, -0.2%

This information is prepared solely for informative purposes, under no circumstances should it be relied upon as a source of investment advice.