Global markets opened the day around and two percent have made little headway throughout the day. Some have attributed today’s sell off to the market’s dislike to a having a democrat president, but there is little evidence to suggest this. Statistics show that markets have no significant reaction to either party winning the presidency one month on from election today. Today’s sell off is more a function of the stellar run global equities have been on since the end of last month. The FTSE has managed to finish higher for eight days on the trot, which is a very rare event indeed so it is understandable that traders are taking the opportunity to book profits.
UK banks are for once out performing the wider markets as credit conditions continue to improve and speculation mounts that the Bank of England might be considering a whole percentage point cut tomorrow. Last week, a 0.5% cut was the clear favourite course of action, but as the week progresses there is increasing chatter that the MPC will go the whole hog.
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