FTSE stumbles after better start

Mid-morning trading sees the FTSE 100 trading marginally below 6800, shedding early gains.

Canary Wharf
Source: Bloomberg

An initial advance for London was founded on energy companies and airlines, with the former rallying after good news from Tullow and Petrofac, while a drop back in oil prices aided the airline sector. However German IFO figures were below expectations, sending European bourses back downwards once again.

The big event of the morning for the UK will be Mark Carney’s speech to MPs. He can expect a fairly rigorous grilling by concerned parliamentarians on the subject of his apparent shift towards a more hawkish posture, but his real challenge will be similar to that faced by Janet Yellen in her congressional testimony – i.e. giving answers that are outwardly satisfying while simultaneously avoiding over-committing himself in any one policy direction. This in itself will provide more than enough entertainment for sterling watchers, even as the pound continues its long march higher.

The US housing market comes into focus this afternoon, following on from yesterday’s existing home sales. It was a firmly indecisive session for Wall Street, with markets continuing their modest pullback from last week’s gains. Stocks could really do with a firm bounce in economic data that can underpin fresh gains and help to block out some of the news from Iraq that is beginning to sap confidence.

Ahead of the open, we expect the Dow Jones to start 30 points lower at 16,907.

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.