UK Shares Continue to Weaken Slightly After Good US News
Financial Market Comments from Anthony Grech, Market Strategist, IG Index.
In mid-morning trading UK shares are a bit weaker than Friday’s finish.
It looks like we are still seeing something of an overhang of the selling that hit the market on Friday, once the impact of the latest US unemployment numbers had been digested.
These were much better than expected. However, some investors seem to be taking the view that a quicker recovery in the economy will tempt central bankers to start nudging up interest rates sooner rather than later. Hence the pressure on equities.
But for now this weakness does look like just a short-term reaction. As the morning has progressed there have been signs of buyers coming back in to pick up perceived bargains.
Looking ahead to the US open, at the moment we are expecting no change to the Dow when trading starts this afternoon.
It would not be surprising to see Wall Street stage some sort of a recovery to claw back up towards last week’s 10,500 highs.
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.
Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.
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