FTSE 100 sets its sights on 9,000
Record highs in the FTSE 100 have been followed up by better US claims data and a solid outlook from Delta Airlines, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
FTSE 100 marches to new record
The 9000 level is firmly in sight for the FTSE 100, which continues to enjoy a solid run. The latest surge in commodity prices has been the driver but the rising tide of global equity markets has inevitably meant that flows continue to prop up the FTSE 100, despite being one of the less impressive performers in recent years. Of course, the UK’s ‘trade deal’ with the US means a tariff letter is not on the cards, though if Trump decides to follow through on tariffs come 1 August, then the FTSE 100 will not remain immune.
Jobless Claims and Delta earnings support Wall Street
The US economy continues to provide positive newsflow, as today’s initial claims comes in below forecasts, echoing last Friday’s payrolls reading. In a sign of the 180-degree turn in markets since April, Delta Airlines has reinstated its guidance; pulling guidance at the time seemed the right thing to do, but was wrong in retrospect. Investors will have to hope that the same thing doesn’t apply this time around.
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