A rocky start this morning saw sentiment a little shaky as fears over tapering in the US quantitative easing process persist. However, with many of the major commodities showing some real resilience and the FTSE 100 being so heavily weighted by mining stocks, a rebound was on the cards.
Heading into the close the FTSE’s top five movers are largely mining stocks, with gold miner Randgold Resources at the forefront of the leaderboard. The FTSE has lost more than 100 points over the week and now finds itself hovering just above the 50- & 100-day moving averages.
US markets have started the afternoon session strongly, which in turn has given European traders the confidence to help move markets higher. On a Friday afternoon, it’s difficult to believe these moves are being driven by volume.
Although the start of next week will see very little in the way of economic data, things pick up as the week progresses. The annual Jackson Hole symposium will undoubtedly offer plenty of soundbites and could well give a clearer indication as to the timetable of Fed tapering.