FTSE 100 drifts as US heads off for Thanksgiving
|In mid-morning trading, the FTSE 100 is down 30 points, with European markets facing a quiet day ahead.
- Markets drift without US volumes.
- Further gains still expected in December.
- IG Robinhood grey market sees significant interest.
There is always a certain weariness about European markets on Thanksgiving Day, knowing that they are almost certainly condemned to a directionless session with little volume and not much movement, and even when there is it is likely to be quickly unwound once the Americans get fully back in the saddle from Monday. Perhaps this year they will be thankful for the rest after the craziness of 2020 and all the volatility that has come with it. November has not been exactly quiet either, with stock markets finding their springboard to a fresh rally thanks to the election and vaccine news. That rally has cooled this week, leaving indices to drift back from their recent highs but without any real conviction. Without the US today and (mostly) tomorrow we can look forward to more drift, especially since investors are expecting more gains in December.
Lockdowns have witnessed a surge in popularity in retail trading, something that has no doubt figured highly in Robinhood’s plans to IPO in the near future. IG’s new grey market on the listing has already seen significant interest, with activity levels similar to that seen for earlier grey markets such as Facebook. Clients already expect an eager response from the market, and current activity has been mostly weighted towards buying, pushing the expected valuation from the starting level of $17-21 billion to $31-35 billion, well above the current market forecast.
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