Pearson has bravely done its best to keep the FTSE in the blue but the combined negativity of BSkyB, Rolls-Royce, Royal Bank of Scotland and easyJet has fought against it. Late in the morning session there was once again rumours that Germany was about to be downgraded for the second time this week – however once again there was nothing concrete to substantiate this.
As the week has progressed, the corporate news flow out of the US markets has become increasingly less impressive and this has seen the buy-on-dip traders being given less and less confidence in buying. As Friday has come with so little economic data to stimulate the market, it has given the afternoon session a bit of a disappointing feel. Without the enthusiastic buyers a number of the equity indices have drifted lower and tested support levels. Figures compiled by Bloomberg highlight that the volume of equity trades today has been 30% lower than for the rest of the month.
This confusing market action has also seen IG clients alter their stance; the client sentiment indicator for the FTSE 100 is currently showing 52% of clients long the market.