FTSE 100 Finding Some Support
Financial Market Comments from Philip Gillet, Sales Trader, IG Index.
Coming up to the mid-morning period, the FTSE 100 is sitting around the 4220 level and trading in a 20-point range, but finding support above 4200.
Oil is pretty much flat, trading around $69, while gilt futures are up, trading around 117.90.
Sentiment has definitely become more timid. The question now is where equity markets go from here.
Less has been said of the ‘green shoots’ over the last couple of weeks, with investors beginning to realise that shoots need roots if they are to survive.
And with world regulators beginning to beef themselves up, there is now a real fear that they may hamper economic recovery as efforts are made to control the financial institutions perceived to have caused the meltdown.
We have entered a fairly benign trading period of late, which is likely to last throughout the summer.
The Fed looks set to keep rates low, especially as the US housing market is still falling.
Mortgage applications out at midday and home sales at 3pm (London time) will be closely watched by traders for an indication as to when and what the US central bank’s next move will be.
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Good Luck!
DB
The above comments do not constitute investment advice Clean Financial accepts no responsibility for any use that may be made of them.
Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.
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