FTSE 100 makes headway & Oil prices remain shy of $100
The FTSE 100 has outshone the Nasdaq today, while oil prices have failed to make much headway despite the lack of progress in negotiations, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.
FTSE shines, but not for the obvious reasons
Today’s session has been one of those demonstrations of stock index weighting. While all the news is on the surge in housebuilders following the weekend pledge to help first time buyers, the real meat of the index’s move has come from Shell and HSBC, the former gaining due to oil’s surge and the latter off hopes of more congenial US-China relations. By contrast, Barratt is adding just 2 points, despite its impressive showing today. Such is the unfairness of life.
Oil rallies but shies away from $100
Today has seen oil continue its recovery, but for the second time in a week the price has failed to hold the highs. An absence of tanker and infrastructure attacks has combined with growing evidence of a more effective convoying system in the Persian Gulf, one that once more demonstrates the US Navy’s ability to get the job done in the best traditions of the service. More evidence of further improvements in supply would start to undermine the foundations of the past week’s bounce.
Author
Chris Beauchamp has been with IG for four years, and in that time has become a regular commentator and analyst for the financial press and TV, with appearances on all the major financial channels as well as the BBC and Sky News.
