6400 level provides support for the FTSE

Heading into the final minutes of the session the FTSE 100 is down around 20 on the day.

Concerns about the US government shutdown and, more importantly, the debt ceiling issue have unsurprisingly continued to weigh on sentiment in European markets today.

As was the case last week the 6400 area proved to be the support again for the FTSE 100, suggesting that, while investors just wish there would be a speedy resolution to this, they are far from being in panic mode at the moment, which tells us that they are just not willing to take on any additional risk while the US remains in stasis.

This week sees the debut for Royal Mail shares following the government’s sell-off. At the moment, the IG grey market is indicating a first day price of around 405p a share, suggesting some very reasonable windfall profits for investors. However, today is the first time we have seen any substantial selling, which suggests that some at least think enthusiasm ahead of the float has perhaps started to over-reach the reality of what the business is really worth.

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