“The broader optimistic mood in the markets – the upward move in stocks – added to the fall in gold, as dealers typically dump it when they want to seek out riskier assets. Gold enjoyed a push higher from the middle of last week until Tuesday, so a pullback was not a big surprise.”
Markets were also put on the back foot by the US announcing it is suspending its extradition treaty with Hong Kong and ending reciprocal tax treatment with the city as tensions between Washington and Beijing escalate.
Looking ahead, US jobless claims data due this afternoon is likely guide trading, the forecast is for fall to 925,000 from 963,000, and the continuing claims reading is tipped to fall to 15 million from 15.48 million.
On a busy day for UK corporate news, Sports Direct owner Frasers’ annual results are likely to be closely watched. The update, delayed from last week, will show how Mike Ashley’s retail empire, which includes House of Fraser, Jack Wills and Evans Cycles, is finding life on the High Street, as rivals cut thousands of jobs.
Traders will also be examining interim results from Premier Oil, Antofagasta and Tarmac owner CRH, while education specialist Pearson’s shares will be in focus. Yesterday the company told schools not to issue BTEC results today after a late u-turn on “apply consistency across teacher assessed internal grades” after the exams crisis over the last week.
