Quiet Morning Session Despite Potential for Volatility: FTSE Spreads News
Financial Market Comments from Anthony Grech, Market Strategist, IG Index.
Despite the potential for volatility, it has been a relatively quiet morning session for equities in London.
The FTSE rallied hard at the open after last night’s turn-around on Wall Street.
Lloyds Banking Group reported a disappointing operating loss of £6.3 billion for 2009, but this reading most certainly could have been worse.
The revision to the UK Q4 GDP number was also worth watching.
Critically a move back into negative territory was avoided, something that could have resulted in a significant bout of selling for UK stocks. As a result, the London blue chip index has been left to consolidate above the 5300 mark.
Much of the volatility we’re seeing is being influenced by sentiments from across the Atlantic.
US GDP data will be closely watched this afternoon, as will the Michigan sentiment reading, as the market continues to seek justification for Tuesday’s shocking US consumer confidence number.
With traders remaining edgy, it’s difficult to imagine we’re now in for a quiet run up to the weekend break.
We’ve already seen downward pressure on UK house prices, the Greek issue continues to spread concern across Europe and the Eurozone core CPI reading has missed forecasts this morning too.
The fact that we posted a decent GDP reading in the UK may be some cause for celebration, but it’s probably worth keeping the champagne on ice for the time being.
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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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