Whatever your style of technical analysis, we seem to be reaching make-or-break levels on the FTSE; without an energetic defence, it will soon head lower. This has been triggered by the recent speech of Mr Bernanke, which raised the possibility of an end to the current quantitative easing policy. The chairman reiterated that any change to the current system would be led by an improvement in US economic data, but as yet that is still to materialise.
This weekend’s comments from French president Francois Hollande will have left many euro-watchers scratching their heads. His optimism has made even űber positive Mario Draghi seem like a pessimist. This highlights some of the problems with the 17 nation group; it is hard to understand how they are all looking at the same problem from the same perspective and coming up with different solutions.
For the time being the likely takeover of Severn Trent by a Middle Eastern-based consortium looks dead in the water, as they will not be increasing their last offer.
An hour after the open the FTSE is lagging behind the rest of the European markets, mainly due to its large weighting of mining stocks.