Cautious FTSE to lose 1% since Tuesday

As the world awaits the UN report on the Syrian regime there is a note of caution in the air, and the FTSE looks set to lose 1% since the beginning of the short week.

Ahead of the three-day weekend in the US investors are leaning towards the defensive sector this morning, with European markets opening lower across the board. Oil prices have pulled back in part due to the rejection of possible military action against Syria in the British parliament last night, and the subsequent decline in oil stocks is hampering any real upside in the FTSE 100. BP and Royal Dutch Shell have shed over 1% in early trade.

The markets are also digesting yesterday’s better-than-expected US GDP figures, along with non-voting US Federal Reserve member Jeffrey Lacker’s statement that quantatitive easing tapering conditions have now been met and the Fed have thus decided to take some money off the table as we enter the final trading session of the month.

Unemployment data for the eurozone came in as expected at 12.1%, while inflation for the region came in at 1.3%, which was marginally lower than the estimated 1.4% year-on-year figure.

Markets will once again be paying close attention to Federal Reserve Bank of St. Louis president James Bullard later this afternoon, looking for further clues on the Fed’s stance on monetary policy.

Gold prices have retreated below the $1400/oz mark due to the stronger greenback. The Chicago purchasing managers index (PMI) report may serve to give the dollar a further boost. Expectations are a slight improvement on last month’s number with a print of 53.2 expected.

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.

  • Ik wens per e-mail informatie van IG Group bedrijven te ontvangen over handelsideeën en IG's producten en diensten.

Voor meer informatie over hoe wij uw gegevens mogelijk kunnen gebruiken, bekijkt u ons Privacy- en toegangsbeleid en onze privacy website.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.