FTSE 100 still held back by correlated dynamics

In noting the modest gains seen in the DAX yesterday, it is interesting to see; the FTSE 100 was the worst performing major European stock market yesterday. As mentioned earlier in the day, it was the usual correlated dynamics that seemed to hold the index back- the higher Pound versus the dollar and the lower oil price. So, the FTSE 100 limped home, to a 12.79 point lower close, at 8,570.77. The FTSE 100 futures are lower this morning too. The prospect of a rate cut from the BOE tomorrow is not yet having much of a soothing impact. As mentioned here earlier in the week, the markets still expect a 0.25% cut in the UK base rate. There will be more to add on that outlook over the next 24 hours, but as previously stated; there is an argument right now for a more aggressive move. The FTSE 100 is currently priced to effectively reopen around 8,545