Even with two days to go until the Christmas holidays begin, it already feels like most traders have deserted the City of London. ‘Watching paint dry’ would be too strong a phrase to describe today’s market action in London, with the rangebound trading made even more unbearable by the knowledge that more is likely to follow tomorrow.
The index has held above the lows of yesterday’s session, but bullish sentiment is nowhere to be found.
The light volumes that prevail at this time of year make it easy to understand why such underperformers like Anglo American are enjoying a bounce today, but it is merely a passing fancy – normal service will be resumed in the new year.
While European markets are off their lows, it has proven difficult to maintain the bounce, especially since noteworthy data is all but absent.
US markets have made tentative gains, but even here the feeling is of a gradual wind down into Christmas. Durable goods orders tomorrow will provide a highlight, but as the time before Christmas slips away, a final festive rally looks like an increasingly unlikely prospect.