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Apple Launch, Brexit And Rising U.K. Inflation In Focus

Published 2017-09-12, 09:03 a/m
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Stock markets around the world continued to rally overnight and into this morning. The Nikkei jumped 1.2% in a catch up rally. The DAX is up 0.6%, while U.S. index futures are up 0.2%.

The FTSE is underperforming its peers today, falling 0.2% due to another rally in the pound. Sterling continues to climb today with EUR/GBP breaking under 0.9000. The Brexit repeal bill passed second reading overnight by a 26-vote cushion. Also, U.K. inflation came in above expectations across the board (consumer, retail, producer, housing) this morning. Even more importantly this inflation comes with no currency boost as Cable is trading at similar levels to this time last year. This news increases pressure on Bank of England Governor Carney to start raising rates heading toward Thursday's MPC meeting.

Technology stocks have taken the baton from insurers to lead the charge upward. Attention is focused squarely on Apple (NASDAQ:AAPL)'s product launch being held at 1 p.m. EDT. Apple is widely expected to introduce new versions of its iPhone and iWatch, plus maybe some kind of TV product.

In currency action, defensive like gold and JPY have been falling after the UN Security Council passed a watered down round of sanctions against North Korea, who has been quiet lately. NZD has jumped after the incumbent National Party took the lead back from Labour in a new pre-election poll.

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