The FTSE charged higher in early trade on Tuesday, boosted by a broad risk on sentiment across global markets and a weaker pound.
Propping up the FTSE are financials and the large multinationals which earn substantial profits abroad and so benefit from the favourable exchange rate.
This morning’s rally ran out of steam later in the session and the FTSE is coasted through the afternoon, following a mildly stronger open on Wall Street.
If the FTSE holds its nerve it could on track to hit a record high of 2019. However, the UK index needs to over come resistance at 7475, last week’s high a level that it has bounced off a couple of times.
Investors are opting to hold fire below the key resistance of 7475 until China’s GDP is released overnight. This will provide a strong clue as to whether the global economy is stabilising or whether there is more bad news to come.