The "56" handle for the FTSE 100 did not last long this morning, but we are under no doubt that we haven’t seen the last of it and expect to be well acquainted by the end of the day. So far we have lost 20 points to 5701.
European GDP figures focus macro minds this morning, with recession expected to be confirmed overall for the single currency zone. A better-than-expected third quarter for France precedes what is expected to be a winter of discontent for growth in the two biggest eurozone economies.
Recent data has shown Germany has started to feel the pinch from its trading partners' weakness, and the currency has managed to hold above a crucial level of $1.27 in the last week; below there we would expect to see lots of fresh selling pressure come in.
In London there aren't many highlights, but Invensys stands out (+4%) as they foresee an improved full-year performance. Developing stories surrounding BP and the "Glenstrata" deal are on our agenda as well. Investors are not ready to celebrate the beginning of the end of BP's Macondo woes just yet, as the shares move slightly lower on the news they are close to a final settlement with U.S. authorities.
The lack of any disclosed figures will keep the brakes on for now. The Glencore-Xstrata soap opera moves one step closer to a reality as Qatar Holdings give the thumbs up for 3.05 Glencore shares for every one of their 12% Xstrata holding.
A messy U.S. session yesterday lead us lower with only a modest rebound seen so far. Currently we are calling the Dow to open up 25 at 1595.