FTSE reverses course
|After an unsteady morning, the FTSE is heading towards the close having recovered all its opening losses.
- FTSE income stocks clamber higher
- FBI testimony dominates the news
- US stocks enter another quiet period
Dividend stalwarts are behind the steady recovery in the FTSE 100 today, as the index consolidates above the 7400 level. While racy sectors like mining and banks are out of favour, it is firms like Reckitt Benckiser, Unilever and others that are steadily pushing higher. The primary driver of this move has been the continuing decline in the US 10-year bond yield, a key benchmark for global markets and a handy indicator of risk appetite. After a brief uptick over the past couple of weeks, the yield is now turning lower, making income stocks like National Grid and Aviva much more attractive. While the business prospects of these firms will have changed little, their relative attractiveness has increased. It is this, rather than any other narrative that is driving markets this afternoon.
Much attention has been lavished on the FBI hearings in Congress. While the revelations have been fascinating, the market impact thus far is limited. So far, investors do not appear to be reaching for the smelling salts, or worrying that this pro-business president is about to be unseated. An otherwise quiet day for markets has meant that it has been hard for either buyers or sellers to take control; on the evidence of the recent past, this is probably just another breathing space before a lurch higher, but so far the absence of steady, broad-based activity in the S&P 500 should incline many towards caution.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.