FTSE Looks to Break Losing Streak
After four successive weekly declines, the FTSE 100 is attempting to end its dismal run and post a higher weekly close. The benchmark UK index is currently trading in positive territory relative to last Friday’s closing level after the big psychological level of 6000 held once more and attracted buyers back into the market. The high of the week came early on, with price topping on Tuesday morning, while the the low was printed yesterday afternoon. It appears the market is consolidating in a 150-200 point range after a decent recovery has taken hold following the sharp-selling seen at the beginning of the year. There’s numerous catalysts on the horizon that could cause a breakout in the not too distant future, and it seems increasingly likely that the direction of the break could prove decisive in deciding the direction for the index in the second half of the year.
Stocks green across the board
At the time of writing, the list of stocks trading higher on the FTSE 100 stands at 99, with all but joining in the move higher. Anglo American, Glencore and Antofagasta are leading the charge with mining stocks looking to pare some of their losses heading into the weekend. Coca-Cola HBC has jumped over 4% so far after analysts at Citigroup raised their rating on the stock to a buy, citing that concerns around a potential naira devaluation and rising world sugar prices were already priced in.
Pound moves lower but still on course for a good week
The pound is trading slightly lower so far today, but it’s been a good week for sterling with the currency shrugging off early weakness and a softer than expected CPI number on Tuesday to move firmly higher. Improving employment and retail sales figures on Wednesday and Thursday respectively have contributed to an overall stronger fundamental outlook, but the main reason for sterling’s strength is a far more favourable showing in a Brexit poll on Wednesday. The results from the Evening Standard survey showed a substantial lead for the “remain camp” of 55 to 37, which is far and above the majority of polls conducted so far - which by and large have shown the outcome too close to call.