Despite more poor economic news from the US - this time from the service sector - markets are edging higher again.
Wall Street is up more than 60 points, as investors sought defensive stocks, and helped push the FTSE 100 47.26 points higher to 4170.12.
But the service sector figures, especially the unemployment element, do not bode well for Friday's US non-farm payroll numbers. Rob Carnell of ING Bank said:
"Falling to an all time low of 31.3, the employment index of the non-manufacturing ISM dropped by more than 10 points form the previous month's reading, which was itself the previous all time low.
A simple graphical comparison of the two series suggests that payrolls are due to fall by 550,000 in December, more than the 325,000 consensus forecast, and more even than our bottom of consensus -400,000 call.
"Any decline in payrolls of the magnitudes we now expect, could drive already jittery markets into a substantial reaction. Expect 10 year bond yields to fall still further by the end of Friday."
Meanwhile oil has moved above $47 a barrel after US stocks of crude and refined oil fell more than expected, suggesting demand is holding up despite the current downturn.
Elsewhere Rentokil, the support services group, slipped 3.25p to 31.25p. An unsubstantiated market rumour did the rounds that it may be considering a rights issue, but this seems wide of the mark.
The company last week appointed Michael Murray, formerly of private-equity owned GSL, as it new financial officer. Earlier last month it said it had sufficient funding in place to support its restructuring plans, having just raised £125m of new five-year money.
