Lack of volatility nudges FTSE lower

A soft open to what is likely to be a quiet day sees the FTSE 100 down three points.

City of London
Source: Bloomberg

The big challenge for European markets on this volume-light day, is to avoid any sudden lurches downward that might spoil what has been a very good week for equity markets.

The excitement of the week has seen the FTSE rise 2%, but today’s calm trading will be a sharp contrast to the frenetic activity of yesterday. Still, with the sunshine blazing down on London, the temptation to wrap things up in a quiet fashion and salute American Independence Day with an early beer will be too much to resist for some.

EasyJet shares have bounced yet again today, after passenger data revealed healthy growth on a yearly basis. Although clobbered in recent months, falling below the long-term trendline, the shares are valued very competitively versus the company's rivals, with bargain hunters stepping in around the £13 level.

With US markets closed the afternoon is likely to be uneventful, although IG will continue to provide trading until futures close at 6pm. The US headed into Independence Day with a spring in its step after seeing 17,000 on the Dow Jones, a reminder that the world’s only superpower still commands the greatest economic muscle as well.

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