FTSE Slips Ahead of US Retail Sales and Budget
In mid-morning trading, the FTSE is down 40 points, weighed down by ex-dividend stocks and a general lack of market-moving events.
Some might say corrections start this way. For several days now it has felt as if a sense of exhaustion has beset global markets.
Despite strong employment numbers from the US last week, markets have been unable to muster much enthusiasm for another push higher.
However, the underlying theme of the year has been that each dip has been the signal for a new round of buying, especially when central bank support is taken into account.
All the old fears can be safely offset once this is considered, allowing us to become more relaxed about the endless posturing of politicians in both the Eurozone and the US.
Once more, the firm’s focus on Asia is bearing fruit, as operating profit climbs 25%.
The drought in US data comes to an end today, as retail sales, business inventories and a budget statement are announced.
This could prompt a resurgence in activity, but even a further pullback would still leave bulls in overall command of the situation.
Ahead of the open, we expect the Dow Jones to start down 20 at 14,430.
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Financial Market Comments from Chris Beauchamp, Market Analyst, IG Index.
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