FTSE 100 stumbles but Dax and S&P 500 keep rising
Investors await news of the French government this afternoon, while watching the year’s strong performers make yet new highs, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
FTSE 100 edges back after strong run
The FTSE 100 has enjoyed a decent couple of weeks, but it looks like it has run out of momentum for the moment. A dearth of corporate news isn’t helping matters either. Meanwhile, investors can be forgiven for focusing on France, where the prime minister faces the likely collapse of his government.
While the CAC40 has managed to struggle higher of late, the contrast with a soaring Dax could not be more stark. The latter index has gained over 20% this year, but it is perhaps more a story of French weakness than overall German strength. Certainly, the German economy continues to struggle, but it is political turmoil and the travails of the luxury sector that has hobbled its Gallic counterpart’s stock market.
Semiconductor names show signs of life
Having notably underperformed the broader US indices of late, it might be the turn of semiconductor stocks to lead the drive to fresh highs once more. It’s not as if US indices have needed much help given the latest record highs, but with the Fed continuing to ease policy, the environment for the classic risk-on sector seems to be getting brighter.
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