FTSE Gains Despite Weak UK Construction Figures
The FTSE spread betting market quickly shook off last night’s US negativity and was up nine points at 5880 by 10am (London time).
Soft US markets saw the FTSE’s pre-market call at -20 points, but this was quickly wiped out and the index seems to be more pre-occupied with tackling the 5900 level than retracing previous gains.
Even this morning’s soft UK construction figures were shrugged off.
It is difficult to target what was responsible for this turnaround but the oft quoted ‘Santa rally’ is taking a fair amount of credit.
Another brewer has been performing well, with Greene King improving their UK market share and driving profits 7% higher, enabling them to raise their dividend by 6.7%.
After very poor figures last year, TUI have had a turnaround in fortunes after the wet summer prompted Europeans to scramble for package holidays to sunnier climates.
With Iberia needing to cut costs dramatically, it is their partner British Airways that has taken action first, with this morning’s news that they will be reducing their cabin crew by 400 staff.
Looking ahead to the US open, Dow futures have been fluctuating all morning but at 10.30am (London time) it’s being called to open flat at 12,965.
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Financial Market Comments from Alastair McCaig, Market Analyst, IG Index.
The above comments do not constitute investment advice and Clean Financial accepts no responsibility for any use that may be made of them.
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