FTSE Opens Slightly Lower as Traders Wait for UK Data
Financial Market Comments from David Jones, Chief Market Strategist, IG Index.
The FTSE 100 opened slightly lower than expected this morning, maintaining the gradual slide away from the year-high seen on Tuesday.
The effects of the mining sector’s volatility continued to be felt, with 9 out of the ten biggest losers coming from that industry.
Despite a reported 26% drop in profit, SABMiller’s share price rose by 2.35%, perhaps driven by the promise of positive results to come in the second half of the financial year.
News of a deal with Colgate-Palmolive saw Reckitt Benckiser’s stock rise 2.6%, and in the banking sector the share price of both Lloyds and RBS increased marginally after new regulatory powers were proposed in the US yesterday.
It will be interesting to see how the market responds to today’s announcement of UK mortgage and public finance data – both of which will serve as indicators of the progress being made in terms of economic recovery.
Any positive news for the housing market may in turn be reflected in an increased risk-appetite for equities. In the US, the country’s fourth biggest retailer Sears Holdings will report results.
These results – when combined with the UK October retail sales figures released this morning – will provide a good indicator for investors of how the retail sector is faring on both sides of the Atlantic.
Investors will be particularly interested in the sector in the run-up to the festive season; retailers will soon be finding out whether consumers are willing to reach for their credit cards or whether post-recessionary fears will prevail.
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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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