FTSE stuck in a rut

Chris Beauchamp IG

A quiet session has seen the FTSE 100 finish the day almost flat, as eyes turn to the French election.

FTSE struggles throughout the day
Retailers escape heavy selling despite data miss
Earnings season fails to cut the mustard

It has not been the most riveting day for London’s FTSE 100, with the index looking like to end the day flat. The first round of the French elections is the main reason for hesitant performance across markets, while a nasty miss for US PMIs this afternoon is also making life unpleasant for those who got caught up in yesterday’s euphoric rally. Retailers in London seem to have avoided the worst, however, despite a miserable retail sales figure that points to UK consumers reining in their spending earlier in the year. The FTSE 100 is yet to recover from its post-election announcement sulk, hovering above 7100 until it can find a reason to recover lost ground.

A busier week of central bank meetings and big earnings announcements should mean that we will see further volatility as time goes on. The rally yesterday shows that it is still unwise to assume that the post-election surge is over, especially in a month that is historically strong for markets, but so far earnings season has not provided the spark to reignite bullish sentiment.

Author

Chris Beauchamp

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