Stocks trade sideways

Equity markets have been drifting between positive and negative territory as traders refuse to take a firm view.

European equity benchmarks seem to be floating aimlessly this afternoon, as mixed economic data from the UK and the eurozone failed to wow investors.

The German market has been in the red since the German ZEW economic sentiment report came in at 36.3 in July, down from 39.6 in June. The survey measures the level of confidence in the Germany economy by institutional investors.

ASOS is offside after announcing the departure of its finance director Kate Bostock, who was in the role for only six months. The share price is down 0.8%.

Across the pond the Dow is down eight points at 15,476, as traders are digesting the inflation data and numerous corporate updates. The level of inflation ticked up to 0.5% for June when economists were expecting an increase of 0.3%, which shows us that demand in the US is increasing.

Meanwhile, reporting season continues: Goldman Sachs and Johnson & Johnson have reported strong sets of figures, while Coca Cola missed its revenue estimate. Some dealers are waiting for Esther George of the Federal Reserve to make her statement at 7.15pm (London time) before taking a position.

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.