Financial Market Comments from Philip Gillett, Sales Trader, IG Index.
In mid-morning trading, shares in London are under a bit of pressure, easing back after yesterday’s one year high for the FTSE 100.
The FTSE 100 index has dipped back below the 5200 level to sit on the lows of the day so far with weakness in financial stocks weighing on sentiment this morning.
The latest UK inflation data has surprised many by dropping more than forecast – with CPI coming in at 1.1% in September.
Market reaction to this news has been fairly muted though, with most investors more concerned about the prospects for this quarter’s earnings season.
Brewer Whitbread is topping blue chip gainers so far, with modest gains of just under 2%. Half-year results have come in slightly better-than-expected and a positive outlook given by the company has kept the share price up at its best levels since the summer of 2008.
Looking ahead to the US open, with a quiet day on the calendar it will probably be the earnings announcement of Johnson & Johnson that influences early sentiment.
At the moment US markets look set to start a little weaker than last night’s close, with the Dow Jones index down around 30 points.
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