FTSE 100 sinks but Wall Street makes early gains

Chris Beauchamp IG

While the FTSE 100 has dropped back today thanks to bad news for heavyweight member GSK, US stocks have started the day in a better mood, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

FTSE 100 hobbled by ex-divs and GSK slump

“While Wall Street has pushed higher and the Dax has made gains this afternoon, the FTSE 100 continues to languish in the red thanks to a slew of names going ex-dividend and bad news for GSK. The latter has gone from a multi-decade high to four-month lows, but now trades around 9 times earnings. Investors who think that the reaction has been overdone might be tempted to go bargain-hunting at these levels.”

Wall Street pushes higher

“US stocks have rediscovered some of their upward momentum this afternoon, though we are now less than 24 hours away from tomorrow’s PCE price data. Should this point towards a further slowdown in price growth then the final day of June trading might go the same way as May’s, which saw a strong rally. A softer PCE reading could renew hopes of a September rate cut, which have taken a knock of late.”

Author

Chris Beauchamp

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