FTSE starts fourth-quarter on solid footing

Mining and oil companies lead the FTSE 100 higher.

Source: Bloomberg
  • Traders start the last quarter tentatively ahead of non-farm payrolls
  • Glencore’s recovery falters as it climbs back to Monday’s opening levels
  • Food retailers dominate the list of FTSE 100 fallers

Following the worst quarterly performance by the FTSE for the last four years, traders have got off to a mildly optimistic start with a combination of mining, oil and gas companies pulling the index higher. Even though China has been enjoying a long weekend with bank holidays today and tomorrow, it has not been stopped from posting mildly positive manufacturing PMI data that has contributed to the upturn in the FTSE’s performance.

Glencore had been enjoying a couple of days respite from the selling, but with this morning’s flirtations with the 100p level taking it back to Monday’s opening price, sellers have been encouraged back in to whack the stock.

This week has seen half the food retailers announcing figures to the markets and Sainsbury’s hanging onto its market share has been as good as it gets, which might explain why the sellers have reappeared so quickly.  

Having rounded off such a miserable quarter it is understandable why traders have been a little reluctant to rush back into the markets. Throw into the mix that tomorrow will be the first Friday of the month, triggering the US to release the latest non-farm payrolls data, there has been a healthy amount of waiting and watching going on.

Released in conjunction will be the unemployment rate and average hourly earnings and the latter of these two will be particularly well-watched following the recent speeches from Federal Reserve chair Janet Yellen and its FOMC voting members.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.