FTSE hangs onto the 6600 level

Uncertainty has gripped traders as the markets have struggled to gain a sense of direction.

The morning session was dominated by poor Chinese data overnight, counteracted by solid European economic data. Although not enough to convince people of a shift in the trend of European economic data, it did give cause for optimism. The FTSE 100 has struggled to show any real desire to move higher or lower over the last four trading days, having closed only fractionally higher or lower than its open and with less than 100 points in the trading day’s range. Indecision has taken over traders. Looking at the IG client sentiment indicator for clients holding positions in the FTSE the picture is similarly confusing, with 51% short and 49% long.

The solid start to the markets was somewhat disturbed just as the US markets opened, as rumours about a possible German downgrade circulated. However, after an hour passed without any further confirmation, this prospect seemed to be ignored.

The US reporting season will continue at pace over the day, and among the bigger names reporting we will see figures from Visa, Ford, PepsiCaterpillar and Facebook.

Tomorrow’s UK preliminary quarterly GDP figures will hopefully give FTSE dealers an opportunity to trade.

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.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.