Financial Market Comments from Anthony Grech, Market Strategist, IG Index.

In early morning trading, UK shares are slightly lower following yesterday’s move to 14 month highs by the FTSE 100.

Maybe not surprisingly, shares are under a little pressure this morning following yesterday’s strong gains.

Some weakness in the mining sector – which was the main catalyst for Monday’s early surge – is weighing on the index, but at the moment traders seem happy to use this sell-off as an opportunity to top up their holdings.

The main economic news for the UK so far has been the inflation figure. Although this came in slightly higher than expected, at 1.5%, it has had minimal effect on markets and still seems to be a long way away from being a concern once again.

Looking ahead to the US open, at the moment we are expecting a slightly weaker start to trading on Wall Street, but only by around 15 points lower on the Dow.

Inflation is also the big announcement over the pond today and it would take a number much worse than the 0.1% expected to knock investors renewed enthusiasm for stocks.

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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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