FTSE's record run continues

Chris Beauchamp IG

The FTSE 100 is on track for another record close, even if it is only 3 points higher than the one 24 hours earlier.

- Investors wind down after a hectic week
- Gold continues its ascent
- Fundamentals to matter again?

The week is meandering to its close, as investors look to tie up a few loose ends after a busy week. Around the world markets seem to have paused for breath, with the focus shifting now away from the Fed towards the French elections, which are moving upon us at speed. Equities remain buoyant, even if they have failed to move much higher in the two days since the Fed meeting. Gold prices continue to advance as the dollar remains under pressure, with the parallels to 2016’s price action remarkably similar. Brexit, Scoxit, the French elections and inflation uncertainty all make a convincing case for why gold will go higher, but there is still much work to be done to restart the failed bull move we saw last year.

The coming week is a quieter one, at least compared to this one. UK CPI and retail sales will ensure that sterling remains a focus of attention, after the pound rallied from its lows thanks to the Fed meeting. However, it looks like we are in for a period of quiet, at least where events are concerned. Stocks remain expensive, but index inflows keep supporting the market, and for now there is no sign of a major dip emerging any time soon.

Author

Chris Beauchamp

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