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.
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.