FTSE 100 clambers into positive territory

Chris Beauchamp IG

Early losses on the FTSE 100 have been reversed, with the index up 20 points as the pre-Thanksgiving session sees stock markets rally off their lows.

Early negativity unwound across markets
Recent big losers in the US start to recover
FTSE outshines Europe once again

The FTSE 100 has swung from a loss to a gain during the course of the day and US markets are clawing back some of their opening losses as investors look forward to the Thanksgiving holiday. A sharp drop in initial claims has provided the fundamental reason for optimism, helping to alleviate some of the worries about global growth that seemed to dominate the first two sessions of the week. Crucially we have seen a number of the weakest stocks in the US start to stabilise, with names like Paypal and Twitter either holding their ground or beginning to edge higher. Bank stocks are still under pressure, holding back the market from making a better move to the upside, but with heavyweight Boeing also holding up well the outlook appears to be brightening for US equities.

In London it is a similar story – energy, mining and bank stocks are making headway, lifting the FTSE 100 from its doldrums of the morning session and once again seeing the UK market outperform its peers on the continent, where Covid fears continue to hit risk appetite. Headlines about a lockdown in Germany sent EUR/USD to its lowest level in nearly a year and a half, helping to provide some small measure of support for European equities. As yet the usual late-November bounce in stocks has yet to really materialise, however.

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Chris Beauchamp

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