US rallies but FTSE lags behind

Heading into the close, the FTSE 100 is 50 points lower, though US markets are once again moving higher. 

A choppy session thus far has seen markets swing around as bulls look to maintain the upward surge while sellers try to kick-start a new leg down. After last week’s solid bank earnings, other US firms continue to provide positive news, with P&G chief among them today. A 4% bounce in revenue led the group to upgrade its forecasts, and the stock raced 4%. Signs of health in US consumer spending, even in relatively humdrum items, should be taken as a good omen, following up on the bank earnings of last week that painted a more robust picture of USA Inc than many had feared would be the case. Adding to the good news,  eurozone consumer confidence is on the up, which boosts the outlook for European consumer stocks, if only slightly. The ECB this week will have to work hard to convince investors that the region can avoid a bigger downturn. 

Left out of the bounce today has been the FTSE 100, which has hit a new low for the week so far, as a resurgent pound works its magic. While a no-deal can never be ruled out, it looks like a cross-party approach to avoid this outcome and then perhaps take over the Brexit process entirely is finally emerging. But with the pound at a two-month high against the euro, a lot hinges on this rosy scenario coming to pass.