Last week ended with a bit of a splutter, and over the weekend traders will have been asking themselves what could keep the FTSE 100’s momentum going.
This week will see almost all of the major UK and European banks post their latest figures, giving traders an insight into how well the banking sector is coping with the tougher capital requirements that have been imposed on it. The raft of corporate news from banks could easily de-rail the fragile recovery we have been seeing in European equities. This follows the end of a US reporting season that has been broadly positive and yet slightly uninspiring. When we consider how high expectations have been, especially with such a weak economic background, it does feel like the corporate news flow has been somewhat overlooked.
Traders will want to keep an eye on the mining and resource sectors, as a number of companies will be posting either figures or trading updates. With gold still holding onto the $1325 level and Brent still bubbling away above $106, this is an area that is trying to arrest its recent slides.