Heading into the close, the FTSE 100 is flat on the day, as markets opt to sit and wait for US job numbers.
- Stock indices stick with their bearish outlook
- Little positive news keeps markets in check
- NFPs point to more grim news as USD moves higher
While markets have stabilised after days of losses, there seems little that can revive bullish sentiment as the day heads to its close. Despite an early attempt at a rally, indices remain under pressure, and it looks as if sellers will continue to dominate as the week enters its final session. Centrica has done its best to put a positive spin on matters, but the news clearly carries little weight with shareholders, who have continued to abandon the firm during the day. In a hangover from yesterday’s news, Next shares are 2.3% higher, as bargain hunters continue to intervene, while Centrica’s decision to tap shareholders has gone down predictably well. Stocks remain under pressure, and with NFPs tomorrow the outlook remains resolutely grim.
Further USD strength provides the reason for why there is little hope for indices at the present time. After weeks of weakness the impetus to buy USD appears too strong to hold back, which would provide a cogent reason for why indices have little ability to move higher. Ahead of NFPs, the market waits to see if the figure can best the number produced by ADP figures on Wednesday.
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