The FTSE has slipped back in early trading this morning with both BP and Shell trading at 7 year lows after the oil giants both fell 1% after the bell.
“The FTSE didn’t stand much chance of a positive open” commented Spreadex Analyst Connor Campbell, “slipping another half a percent.”
“It’s been a pretty bleak week for the UK index, shedding around 150 points from Tuesday’s intraday peak as the latest oil crisis drew focus from the sterling-sapping/FTSE-boosting political uncertainty that was the main market driver in the previous fortnight.
Meanwhile, it’s the European and US PMI reports for June that are the main focus for investors today, ending a week of limited volatility for the major instruments. ADS Securities Analyst, Konstantinos Anthis suggested “The PMI figures from the Eurozone are expected to print slightly lower this month indicating a mild pullback in business activity”
“The US PMI figures today are expected to print slightly lower but we expect limited reaction from traders given that it’s the end of week, but a bearish reading could act as a prelude to next week’s more important reports”
All three major US bourses overnight finished within 0.1% of Wednesday’s close. Accendo Markets Analyst, Mike van Dulken noted “with Healthcare names outperforming while Energy names avoided further significant losses.”
“Consumer Staples was the worst performing sector on the S&P500, dragging the index one point lower, while Goldman Sachs provided the most losses for the Dow Jones. The Nasdaq outperformed as biotech stocks helped the index to a second day of gains.”