Financial Market Comments from Anthony Grech, Market Strategist, IG Index.
The FTSE is struggling to stay above the 5700 mark as Thursday’s session gets underway.
Tumbling US consumer credit last night has set the pace for equities and traders took this news as a cue to start taking money off the table after the recent run of gains.
As a result, trading screens are a sea of red with only a handful of FTSE 100 constituents managing to find positive territory.
Even those bumper results from M&S are failing to provide much cheer for the retailer.
Other earnings news has also been upbeat with Easyjet picking up passengers off the back of British Airways industrial dispute, in turn lifting the mid-cap airline a little.
Heavyweight mining stocks are under pressure again with copper prices in reverse whilst the energy sector struggles as crude oil edges back to $85/barrel.
Rate verdicts from London and Frankfurt are expected to come with few surprises. However, the Eurozone does now seem to be struggling, with yesterdays 0% GDP reading serving as a stark reminder of the problems faced by the trading bloc.
With Greek debt issues still ongoing, traders could rightfully become nervous around their exposure to assets denominated in the common currency. As a result, any meaningful signals from the ECB may impact equities as well as the Euro.
Wall Street is expecting to see its losses extended at the open with the Dow Jones currently set to drop another 34 points. Nevertheless, if the selling continues in Europe, this could be further amplified.
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