6400 level provides support for the FTSE

Heading into the final minutes of the session the FTSE 100 is down around 20 on the day.

Concerns about the US government shutdown and, more importantly, the debt ceiling issue have unsurprisingly continued to weigh on sentiment in European markets today.

As was the case last week the 6400 area proved to be the support again for the FTSE 100, suggesting that, while investors just wish there would be a speedy resolution to this, they are far from being in panic mode at the moment, which tells us that they are just not willing to take on any additional risk while the US remains in stasis.

This week sees the debut for Royal Mail shares following the government’s sell-off. At the moment, the IG grey market is indicating a first day price of around 405p a share, suggesting some very reasonable windfall profits for investors. However, today is the first time we have seen any substantial selling, which suggests that some at least think enthusiasm ahead of the float has perhaps started to over-reach the reality of what the business is really worth.

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa 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. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.