Mining stocks have dragged down the FTSE 100 again, leaving it behind while other indices make fresh gains ahead of US jobs data this week, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
FTSE 100 slips lower
“While the Dax hits a new record high and the Nasdaq 100 starts to move higher again, the FTSE 100 has been left out. Losses in commodity prices have sent the mining sector into retreat, weighing on the index. The year that started so well for the FTSE 100 has turned into yet another dismal period of underperformance. International investors continue to avoid the UK, starving the FTSE 100 and its constituents of the flows needed to fuel a proper rally.”
Is a ‘Santa rally’ still possible?
“Investors can be forgiven for worrying that they have already received their presents, in the form of an astonishing rebound for many indices. The Dow’s straight-line 12% surge from the October low shows no sign of going into reverse, but with so much good news priced in it seems that Santa has already delivered his rally. Barring a sudden drop in payrolls this week, 2023 might go out with a whimper rather than a bang.”
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