Markets miss Greek madness

In mid-morning trading the FTSE 100 is broadly unchanged due to a lack of news flow.

Source: Bloomberg

Not too long ago traders were sick of hearing about Greece, but now they look back on the frenzied activity of those weeks with a wistful sigh. Next month Greece will have to stump up a few billion to keep its creditors sweet, but until then it looks to be all quiet on the Greek front.

Heavy losses in commodities continue to be a burden on the FTSE’s mining contingent, although this morning the usual brave bargain hunters are in evidence.

In general indices have struggled to make much headway in recent days; the Greek-related euphoria has faded, and while US earnings season has had some pleasant surprises, it is only now that the flow of updates turns into a torrent.

Shares in Royal Mail are drifting lower after the company issued an update which bore a stamp reading ‘business as usual’. The stock is fractionally lower today, but with the Ofcom review hanging above the firm it is not hard to see why investors have been none too keen to chase a rally that has seen the shares gain 18% since January.

We are expecting the Dow Jones to open 25 points lower, at 18,075, as the futures market is following Europe lower. US reporting season has got off to a strong start, but then again expectations were low going into it.

Today’s session will be dominated by the tech sector as updates from Microsoft, Apple and Yahoo are anticipated.

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.