FTSE higher despite low volume session

In mid-morning trading the FTSE 100 is 15 points higher, making some hay while European markets take the day off.

An aerial view of the City of London
Source: Bloomberg

We’ve been able to dust off the ‘all time highs’ moniker for the DAX and US indices recently, but the FTSE 100 version remains in the cupboard unused. We may, however finally be seeing the index making another run towards the recent high of 6894 and then on to 6900, as the London market looks to emulate its cousins in Germany and the US. Even with an easing European Central Bank and in-line US job numbers, the index still looks uncomfortable at these levels. Although the picture from last week is supportive, the week ahead is not quite so encouraging, with only retail sales from the US and Japan in the latter half of the week offering hope of positive catalysts. 

TSB’s IPO has been priced this morning, ahead of the impending flotation. The IG grey market has moved lower in response to the decision to price the offering at around 15% below book value, but this move has already met with approval from clients who are beginning to view the lower offer as a more compelling valuation and a prudent recognition that the recent flood of IPOs has muddied the waters somewhat. 

US markets must rely on Friday’s job number if they are to retain the upward move that was so clearly in evidence last week. The remarkable fact is that around a quarter of the S&P 500’s gains for the year so far were made in the past week. While this might be a damning repudiation of the ‘sell in May’ theory, for 2014 at least, the fact is that rallies need fresh news to sustain them, and aside from retail sales later this week that news is worryingly absent.

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.