Financial Market Comments from Anthony Grech, Market Strategist, IG Index.

In mid-morning trading the FTSE has pushed through the 5500 level.

Despite a slow start, trading in London has pushed the FTSE index out to its best levels since the second week of September 2008.

Banks are enjoying another good day with RBS and Barclays at the top of blue chip gainers so far, despite investors’ attention mainly being focused on the crucial Christmas sales figures from retailers.

Department store John Lewis has revealed that Christmas sales were its best ever and high street chain Next has raised its full year profit forecast.

However, Next is bottom of the FTSE constituents today – off by 2% – which seems mainly due to a cautious outlook for 2010.

Yesterday saw Next’s share price at two year-plus highs, so a degree of caution by investors in reaction to the statement is not too surprising. Some are simply choosing to stand aside until the rest of the individual retail numbers come out.

Looking ahead to the US, at the moment we are expecting little change for the Dow Jones when New York opens.

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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