FTSE Index and UK Market Trading News
Financial Market Comments from Anthony Grech, Market Strategist, IG Index.
At mid-morning in London, the FTSE 100 is down around 42 points to 5096.48.
Today’s drop on the FTSE is a clear sign of profit-taking among short-term investors and a stark reminder that sunny optimism can last for only so long without faltering, especially in the midst of a global downturn.
The UK’s blue-chip index has gained around 21.5% so far this quarter, with many expecting the FTSE to post its best quarterly percentage gain since its launch in 1984.
This morning though, the LSE took points off the FTSE, slipping 5% to 835p. Other poor performers included British Airways, 3i, Thomas Group and house builder Wolseley, all down between 2.95% and 3.78%.
Eurasian, Segro, Old Mutual, BSkyB and GlaxoSmithKline managed to defy the trend, rising between 0.58% and 1.98%.
Yesterday, the Fed announced no change in US interest rates, saying it would continue to free up the credit market with its quantitative easing programme, as planned.
The FOMC also said that economic activity is finally improving in the US – possibly indicating that the country may finally be taking its first solid steps toward a recovery.
For now though, US investors remain cautious, and today’s housing market data may influence the flow of sentiment when Wall Street opens today.
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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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