FTSE directionless after FOMC meeting

In mid-morning trading the FTSE 100 is down 20 points as the Federal Reserve gave little away last night. 

City of London
Source: Bloomberg

For all the noise in the market the FTSE 100 has barely moved. The non-stop stream of corporate updates has kept traders glued to their screens, but volatility remains low. It just goes to show that the FOMC is bigger than dozens of earnings updates. The announcements from companies have been better than expected, but most stocks have remained indifferent.

Lloyds has lost ground in early trading despite a decline in loan improvements and a jump in its first-half pre-tax profits. It is possible we could see the government selling a stake in the bailed out bank this side of Christmas.

Royal Dutch Shell is on the rise after it reported a healthy jump in EPS. The stock is eyeing the £26 level but developments in Russia could hinder this.

BG Group is in the black after its EPS increased by 22% on the quarter. The company described the quarter as ‘good’, but with its high energy costs would its clients agree? 

In the US, we are expecting the Dow Jones to open 110 points lower at 16,770. Traders know the QE days are numbered and the prospect of no safety net has spooked US equity traders.

Exxon Mobil will kick off reporting for the US big oil companies at lunchtime today. Its production levels have fallen in 10 out of the past 11 quarters; the Russian situation isn’t helping. 

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.