In mid-morning trade, the FTSE 100 is a little weaker but it has been a calm morning so far.
Strength in US markets fading into the close on Tuesday was always going to put some pressure on shares in London. Despite this we are seeing banks near the top of the table today with Lloyds up around 4%.
Yesterday’s various downgrades of growth forecasts by the IMF are having little impact on sentiment so far.
There is a feeling amongst UK spread betting investors that this announcement wasn’t telling us anything that hadn’t become crystal clear over the last couple of months.
The immediate concern is still the European debt problem, and news that the Greek government will be meeting today to discuss speeding up cuts has helped here.
This morning’s release of minutes from the latest Bank of England meeting would appear to suggest that the Bank is ready to fire up the printing presses if need be and kick off another round of quantitative easing.
Reaction has been fairly muted so far, apart from in the forex spread betting markets with many investors still feeling that central bank intervention hardly gets to the core problem of addressing stuttering growth.
Looking ahead to the US open, at the moment we are forecasting the Dow to start around 30 points lower this afternoon.
With the Federal Reserve announcement due later this evening, it could be a quiet day in prospect with traders unwilling to commit until this is out of the way.
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Financial Market Comments from Ben Critchley, Sales Trader, IG Index.
The above comments do not constitute investment advice and Clean Financial accepts no responsibility for any use that may be made of them.
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