Mid-morning and it’s been a lacklustre start for the FTSE.
The major equity indices across Europe seem to be in something of a consolidation phase right now, despite the flow of relatively upbeat news that’s in play.
There has been a definite improvement in sentiment over the outlook for recapitalizing the Eurozone banks and averting default in Greece and this is leading at least some of the UK banks to outperform on the day.
This has been accompanied by a flurry of M&A news and so it’s perhaps surprising that we’re not seeing more support for UK spread betting markets.
That said, with the FTSE having yesterday tested levels not seen since early August, the pause for breath may well be overdue.
Rolls Royce is currently leading the London index amidst news of a joint venture with United Technologies.
At the other end of the board is the hedge fund giant, Man Group, struggling once again as investors remain shy of the stock on the back of recent updates. Some read-across from peers may also be weighing here.
Upbeat Q3 news from Rio Tinto has also left the stock looking relatively uninspired, with the mining sector as a whole generally weighing on the performance of the FTSE.
Earnings news from the US will be closely watched after the mixed bag we’ve seen so far, although numbers from tech giant, Google will have to wait until after the close tonight.
That theme of consolidation is being felt on Wall Street too, and we’re currently calling the Dow around 55 points lower.
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Financial Market Comments from Yusuf Heusen, 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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