FTSE 100 Reaches 14 Month High: Index Spread Betting Update
Financial Market Comments from David Jones, Chief Market Strategist, IG Index.
In mid-morning trading it has been a strong start for UK shares.
The FTSE 100 is making a bumper start to the week – up by more than 1% to hit its best levels in 14 months.
It is the mining sector lifting the market this morning with all five blue-chip gainers coming from here, as stronger commodity prices and a move by gold out to new all-time highs have given the index a fresh surge of momentum.
This decisive move by the FTSE 100 would seem to allay investors’ fears that the market was looking a little toppy and may have got ahead of the broader economic recovery.
This has set sights on the next major historical peak for the UK index – the 5600 level from early September 2008.
We are not seeing the same sort of gains so far for US futures in early trading at the moment, but we are still expecting the Dow Jones index to start 70 points higher than Friday’s close.
With US retail sales due out ahead of the market open and the Americans maybe faced with playing catch-up with the UK for a change, it should make for an interesting session this afternoon.
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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.
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