FTSE marginally up for the first time this week

<p>The FTSE 100 is seen going into the close very marginally up for the first time this week, after two consecutive downbeat sessions which saw […]</p>

The FTSE 100 is seen going into the close very marginally up for the first time this week, after two consecutive downbeat sessions which saw the blue chip index shed 2.2% and hit its lowest level of the year on Wednesday. 

Today the FTSE100 proved to be fairly range- bound failing to push much higher than 5560 whilst finding a support at 5490, a sign that investors are pausing for breath following a news driven week of trading. 

Weak Chinese trade data this morning brought back that nagging concern of growth slowing for the Red Dragon and further undermined risk appetite which was suffering following concerns in the eurozone. As a result investors have continued to exert short term trading strategies and act to reduce the risk is their portfolio, perhaps an approach which we will see progressively more of as May continues.

With a lack of economic data flowing out of the US the focus was plainly on the Bank of England’s Rate decision and Asset Purchase Target at midday. The Bank, as expected, left the key lending rate unchanged at 0.5%. Perhaps more notably the nine members Monetary Policy Committee decided to maintain the asset-buying program at 325billion pounds and unlike in previous statements, they made no mention of the size of the programme being kept under review. 

Given that inflation figures for the UK were 3.5% in March, well above the bank’s 2% target it would suggest that inflationary worries are taking the edge over worries for the state of the economy for the time being, even though the UK has technically slipped back into recession.  Despite a short sell off following the announcement the FTSE 100 found the energy to push back into positive territory for the close.

Equities taking the headlines today included ARM Holdings who topped leader board gaining over 4% following broker upgrades and its target price being adjusted to 490p from 460p. Old Mutual was also in demand after announcing a 6% rise in its funds under management, this saw the stock gain over 4% throughout the course of the day.

Looking towards tomorrow the Chinese Inflation figures will add more depth to the story for investors but the main focus will look towards the Economic growth forecasts released by the European Commission.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.