Traders' attention turns to eurozone

In mid-morning trading the FTSE 100 is in positive territory, although it is quickly giving up its gains.

Canary Wharf
Source: Bloomberg

The London market popped higher on the back of dovish commentary from the Federal Reserve last night. Janet Yellen removed the word ‘patience’ from the statement and in doing so cast doubt over the likelihood of a rate rise in June. It isn't the first time a central banker has given with one hand and taken with the other.

Traders are delighted to have the Fed meeting over and done with as now they can turn their attention back to the eurozone, where the market is certain that Germany and Greece will be at each other's throats. IG is offering political markets on the UK general election in the wake of George Osborne’s budget and the IG general election binary is indicating that there is a 79% chance of no overall majority.

Next did exactly what it said it would do, and posted a full-year revenue of £4 billion. The company’s catalogue business Next Directory saw annual sales growth of 12%, and this has helped the retailer register record revenue. However, the company’s cautious outlook pulled the shares back from the all-time high.

Shares in Savills have slipped from the fresh highs seen yesterday as traders cash in on the company’s stellar set of figures. Revenue at the estate agent reached record levels as the booming British property and a recovery in continental Europe ensured pre-tax profits exceeded the £100 million mark.

Across the pond we are expecting the Dow Jones to open 46 points lower, at 18,030, as today is the calm after the Federal Open Market Committee storm. US index futures are trading lower but given that a June hike seems to be off the cards we should expect a fresh run at all-time highs. This short-term pullback in the US market will provide an opportunity for the bulls to get back in the game.  

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