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Once again the mining sector is weighing down the FTSE 100, being dragged lower by the falling commodity markets. With the banking sector again struggling, there are few plus points when looking at the FTSE today. The valiant performance of the market to keep itself above the psychological 6000 level and then retake the 200-day moving average seems to have taken all the fight out of traders.
With equity volumes continuing to be so low, it is difficult to think that profit-taking is the reason for the markets moving lower. It looks considerably more likely that traders, with so little to encourage them, have simply run out of steam. We will need to see some particularly impressive University of Michigan sentiment figures this afternoon to regain the momentum that we had.
With this being the final day in office for Sir Mervyn King, it only feels right that we recognise his efforts and contribution to the nation over all these years. Although he has overseen some of the most problematic times for the UK economy, his efforts can’t be denied. Many will be hoping that, with next Monday being July and the start of Mark Carney’s tenure, we have turned a corner. Time will tell.