FTSE makes a lacklustre start

In mid-morning trading the FTSE 100 is down over 20 points, with the joint speeches of US secretary of state John Kerry and UK foreign office head William Hague partially to blame.

It is a sluggish start to the new week for the FTSE, as it bounces along just keeping its head above the 50-day moving average. With Japan winning the race to hold the 2020 Olympics, the Nikkei has given Asian markets a slightly distorted appearance, closing aggressively higher. UK chancellor George Osborne will be speaking today and updating the markets as to how the UK recovery is going. Of course, with this being as much a political as an economic speech, almost all of the content has already been leaked, leaving little to surprise the markets.

Associated British Foods has once again had its figures propped up by its Primark arm; the markets will no doubt be wondering how long the discount fashion chain can maintain this for. Lloyds Banking Group has plenty on its plate in the coming year, as disentangling the government's holding in the company prior to a general election remains on the horizon. But first, following the government's bailout of the firm, it will have to re-launch Trustee Savings Bank (TSB) as a pre-requirement of the European regulators.

US markets will find it hard to look too far without the topic of Syria arising. It is likely that before the week is out the US Congress will hold a debate to consider the level of support for President Obama's intentions to intervene in the Middle East. With just over a month before the US is due to hit its debt ceiling again, markets are awaiting the nation's plan of action, although it is not only the cynics who expect that this will once again go down to the wire. Ahead of the open, we expect the Dow to start 30 points higher at 14,952.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts

Een artikel zoeken

Form has failed to submit. Please contact IG directly.