Small gains fail to lift sentiment
|In mid-morning trading the FTSE 100 is 30 points higher, but the rebound in equity markets is still unable to gain much traction.
European markets are advancing this morning, attempting to recapture some of the bullish momentum of last week. The rebound in risk appetite has stalled over the last couple of sessions, as the US-China trade war has stepped up a gear, but bullish investors are not giving up without a fight, hoping to restart the move higher as trade war news diminishes. Aside from the RBA’s dovish minutes overnight however there has been little macro data to help this move, although two Fed speakers later today might provide some reassurance regarding the FOMC’s dovish intentions. Markets are still struggling to find a decent catalyst for a rally however, with a sense of exhaustion prevailing after the rally of January – April.
Galliford Try is putting a brave face on its difficulties, announcing a plan to reorganise its struggling construction arm. But this looks like a holding action, with the better performance of its housing division still not enough to dispel concerns about the overall outlook for construction. The early bounce in the shares is being eroded, with the overall impression still a gloomy one.
Ahead of the open, we expect the Dow to start at 25,743, up 64 points on Monday’s close.
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