Thin volumes see FTSE ease higher

The FTSE is trying to ensure it finishes the year on a positive note as it heads towards the close, up by 18 points.  

City of London
Source: Bloomberg

With numerous countries enjoying bank holidays today and the likes of the FTSE closing just after midday, traders have seen a lethargic market struggle to move into second gear.

The overnight Chinese manufacturing PMI figures might have been fractionally better but not sufficiently so to trigger a move, and the US economic data is not going to be posted until after most of Europe has headed home. 

The quiet trading session will have given many a moment to review the year and, for the first time in over a decade, this December the FTSE will close at lower levels than it started. Considering the FTSE flirted with the 6900 level on several occasions over the year, predictions of a year end 7000 level certainly did not look too outrageous.

This year saw the end of US quantitative easing, something that many had worried over but markets took in their stride. The legalities of Russia’s annexation of Crimea will be debated for years to come, a timeline similar to the sanctions the West has imposed on Russia.

The economic picture materialising out of China has seen a continuing cooling of its economy, not down to levels of Western nations but sufficiently low to see commodity stocks do some serious rescaling of their future expectations.

The oil price in the last six months has also collapsed by 50%, as Saudi and OPEC nations play hardball over market share. Early expectations of a two-horse race between the US and UK in raising rates in 2014 has ended with a whimper and not a bang.

As we look into 2015, the picture is clouded by Greek elections that threaten to reignite the eurozone crisis, while there seems no end in sight to the rout in oil prices. The FTSE lagged its peers for most of 2014 and with conditions as they are it will struggle to keep up in the year ahead.

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.