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FTSE 100 closing reversal was disappointing but can it rebound today?

The outlook for UK monetary policy just got another dovish push this morning, following the release of the latest UK data on GDP and manufacturing and industrial output. The fact that the UK economy shrank in October is not good news for UK money market bulls, but surely good news for those advocating the BOE is done raising rates. That remains to be seen of course, bit this data has not really shifted the dial for the FTSE 100 futures yet this morning. The index did reclaim the 7,600 handle for the first time since October 18, but it was not able to hold the gain. The index reached 7,607 but later fell back to 7,542 and closed right on that low too, with a loss of 2 points on the day. There is now clear divergence in play for the FTSE 100, in the sense that weaker data should keep the FTSE higher on the basis of reducing the threat of higher interest rates, but at the same time increasing the threat of recession, which could cap stocks. We shall see if the reversal yesterday has further play out when live trading resumes this morning, or if the index can rebound again 
 

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