Markets miss Greek madness

In mid-morning trading the FTSE 100 is broadly unchanged due to a lack of news flow.

Source: Bloomberg

Not too long ago traders were sick of hearing about Greece, but now they look back on the frenzied activity of those weeks with a wistful sigh. Next month Greece will have to stump up a few billion to keep its creditors sweet, but until then it looks to be all quiet on the Greek front.

Heavy losses in commodities continue to be a burden on the FTSE’s mining contingent, although this morning the usual brave bargain hunters are in evidence.

In general indices have struggled to make much headway in recent days; the Greek-related euphoria has faded, and while US earnings season has had some pleasant surprises, it is only now that the flow of updates turns into a torrent.

Shares in Royal Mail are drifting lower after the company issued an update which bore a stamp reading ‘business as usual’. The stock is fractionally lower today, but with the Ofcom review hanging above the firm it is not hard to see why investors have been none too keen to chase a rally that has seen the shares gain 18% since January.

We are expecting the Dow Jones to open 25 points lower, at 18,075, as the futures market is following Europe lower. US reporting season has got off to a strong start, but then again expectations were low going into it.

Today’s session will be dominated by the tech sector as updates from Microsoft, Apple and Yahoo are anticipated.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.