Figures released this morning show that UK Q3 output rose by 0.8% which was bang in line with optimistic forecasters.It means that the UK economy is now 2.5% below the peak of output before the downturn. The service sector has fully recovered and is now
0.4% above its pre-downturn level.The ONS says that but for a fall in gas and oil output the economy would have grown at 1%.Meanwhile, a survey by YouGov and Cebr has found that consumer confidence in the UK economy has jumped 15 points since the start of the year and five since July.Are things really that rosy ? Mark Carney says that the BOE is certainly doing its part, in a speech last night he stressed that no banks were too big to fail and that the “UK was open for Business”
Meanwhile all eyes on German IFO later this morning as the EUR surges to new levels on the topside.Is there anything out there that can derail this rampant Euro train?Yesterday’s weaker than expected PMI prints out of Germany and France took some monetum off , but the aggressive bounce seen since we are firmly back on a 1.38 handle and starting to look comfortable up here. Until 1.3700 on downside breaks on the downside traders are content to buy the dips. These dips have been getting progressively shallower over the past couple of sessions, and unless the morning’s German IFO print is particularly disappointing this will continue to be the case. Topside 1.3850 is the first hurdle with some barrier interest, while more importantly beyond this the focus is on 1.3950 resistance.
The GDP release even though positive still has not managed to see cable break out of topside resistance at 1.6260 and despite the volatility around the release it remains trapped in a 1.6120-1.6260 range.
Elsewhere Twitter has said it will offer 70m shares at between $17 and $20 each in its highly anticipated stockmarket debut. The price will value the micro-blogging website up to $13bn rather than $15bn that was expected. This morning Samsung Electronics has announced a 26pc jump in third quarter net profits to 8.24trillion won (£4.7bn) amid surging sales of its Galaxy range of smartphones and tablets. Strong growth in the semiconductor business has helped produce another record operating profit of 10.2trillion won.