FTSE momentum slows over company weakness

Heading towards the close the FTSE 100 is just about staying in the green as markets look to be running out of steam. 

London skyline
Source: Bloomberg

Tesco and Morrisons in top five risers

A combination of mining and energy company weakness has seen the FTSE struggle to keep the momentum from earlier in the week. As spot oil prices continue collapsing these moves are no real surprise. In a turn up for the books, better-than-expected economic data from both France and Germany look to be contributing to the FTSE staying in the green. Christmas is now just six weeks away and the markets appear to have decided that food retailers have been punished enough.

On a weekly basis, both Tesco and Morrisons snuck into the top five risers for the FTSE.

Virgin Money's concern over the less than enthusiastic IPO market appear to have been well placed as the second day of trading has seen the shares sell off below their placing price.

Virgin America starts trading today on the NASDAQ 100 and looks to have a considerably better chance of getting off to a flying start.

Dow least bullish after adding 1,600 points

In the last month the Dow Jones has added over 1,600 points but this week has been the least bullish, suggesting that the reporting season driven move is beginning to feel a little overdone. The fact that the Dow has now moved into heavily overbought territory, gives further weigh to this assumption. Strong retail sales and University of Michigan confidence figures should ensure a positive end to the week.

Twitter's self-worth has probably taken a bit of a battering as Standard & Poor's has given its debt a junk rating. 

Brent struggles to bounce

Oversupply and weak demand continue to weigh on energy prices with Brent crude only half-heartedly trying to bounce, following yesterday’s aggressive selloff.

Many oil traders will be feeling that the next OPEC meeting at the end of the month can’t happen fast enough as current levels were last seen in October 2010. 

The selloff today in gold should put paid to any lingering hopes gold bugs might have of the precious metal bouncing. 

US dollar dominates

GBP/USD has spent much of the last six weeks oscillating around the $1.60 level, but the last three trading days has seen that magnetism finally break as a fresh round of US dollar strength pushed GBP/USD down to $1.56, off by over 100 pips on the last day of the trading week.

USD/JPY has gained a fresh round of impetus and is hitting levels last seen in 2008.

Similarly to the pound and the yen, the euro has seen US dollar dominance force EUR/USD down towards $1.24.

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