FTSE set for worst week in three months

The FTSE 100 is lower once more today and unless the market recovers strongly before this afternoon’s close, this will be the worst week for the index since early February. Before trading ceases for the weekend the US Non-Farms Payrolls report will be released at 13:30, so heightened volatility can be expected in the intervening hours between this major economic release and the cash close at 16:30.

Has the FTSE peaked again in April?
On April 27th 2015, the FTSE 100 posted both its intraday all-time high and highest ever closing level before beginning a decline that amounted to a drop of over 20% and thus fulfilling the definition of a bear market.
Despite an impressive rally of more than 15% since January’s low, the reversal from this year’s high on 20th April has capped gains and allowed the bears to regain control. The political uncertainty surrounding the outcome of EU referendum on the 23rd June is only likely to increase as the date approaches and with the historically weak seasonality effect also possibly coming into play, this week’s declines will likely be a cause for concern amongst investors who were perhaps starting to believe that the worst was behind them.

Inmarsat shares plummet on weaker outlook
Satellite firm Inmarsat has extended sharp declines seen yesterday after the firm reported weak results for the first quarter. Shares were off by 6% in early trading this morning and despite paring some of these losses, the stock is still down by more than 4% and poised to post a double-digit drop over the last two sessions. As has been the theme, and possibly a driving force in the recent spate of selling, mining stocks are lower again today with Anglo American, Glencore and Antofagasta all near the bottom of the index in terms of performance. As is typical of declining stock markets, the biggest gainers on the index are often perceived as safe haven plays - with Randgold and Fresnillo moving higher as the price of precious metals can often rise when sentiment sours.