While investors have hunted for reasons to be optimistic, precious few have materialised as for the fourth day in a row this week the FTSE has started firmly in the red. The last couple of days have highlighted how the race to be this year’s worst performing FTSE firm was a straight shootout between Anglo American and Glencore, both being down almost 75% year to date.
That being said, both these firms are showing a little more resilience this morning with prominent positions in the list of today’s best-performing FTSE stocks. Glencore’s investor update had the primary role of instilling confidence into its battered shareholders. Considering that the mining and trading firm has made such headway in cutting its debt dependence – which is now down to below $20bn – the current difficult market conditions are looking a little more manageable.
TUI has offered travel firms a little more reason to be optimistic as full-year core earnings have beaten expectations even with the tragic events in Tunisia, Egypt and France this year.
The currency markets have had plenty to digest with big moves in both the Australian dollar and the South African rand and all of this before the Bank of England has even been given an opportunity to surprise the markets. Changes to the RBA interest rate now look less likely, while the rand has nose-dived following the surprise sacking of the country’s finance minister.
The generation of mortgage holders who have never lived through an interest rate rise from the Bank of England will have had a blissful night’s sleep as worries that trend is about to change today are almost non-existent.