Heading into the close, the FTSE 100 is down 3 points, while US indices continue to trade in a sideways pattern.
For a second day, US markets are struggling to maintain momentum, with another attempt to push on beyond 2915 by the S&P 500 hitting a brick wall. Key measures of stock market breadth have also been flatlining or declining for several days now too, threatening to pull the rug out from underneath the equity rally, but the prospect of a long weekend seems to be providing the market with the energy to move higher in the short-term. But earnings season so far has produced little in the way of blockbuster surprises, and with trade talks still unresolved the market seems more vulnerable to downside shocks than any sudden leap higher. Sterling has remained resilient in the face of a weaker UK CPI
print, refusing to move below $1.3040, with the apparent lack of a follow-through from stronger wages bolstering the more positive economic outlook.
It was a rare miss from Bunzl, as the shares dropped 9% following a warning about weaker growth in its North American market. Having hit an all-time high just two months ago the shares look rather fully-valued, and investors will be hoping that today’s update is a one-off rather than the beginning of something more extensive.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.