Mid-morning trading has seen the FTSE 100 shed 20 points, while US futures point towards opening losses as well.
Stocks continue to digest their huge gains from earlier in the week, as the rally moves into more of a mature phase following the initial enthusiasm of Monday and Tuesday. With little in the way of major news to drive price movement stocks have been reliant on the few earnings reports coming out, but also on watching Omicron-related developments. The UK’s move to new restrictions points towards the expected playbook for the weeks to come, and could well put some pressure on equity markets in what is normally a fairly positive time. For major indices in Europe and the US the knowledge that three vaccine doses can successfully combat the variant should help investors to retain an optimistic view of the situation, but the imperative is to ensure more vaccines reach the rest of the world, to avoid a cycle of new variants appearing regularly.
Unsurprisingly airline and aviation stocks are struggling in London, on expectations that there will be further restrictions announced around the globe. The cheery tone of Rolls-Royce’s update this morning has not been matched by the shares, which remain under pressure, having lost 16% over the past month versus a flat performance for the FTSE 100.
Ahead of the open, we expect the Dow to start at 35,612, down 142 points on Wednesday’s close.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Recommended Content
Editors’ Picks
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.