The FTSE-100 is kicking off the week’s final session on a rather subdued note with some very modest gains, but there’s an air of caution building as traders digest a report from the European Central Bank that highlights just how overvalued UK shares appear to be.
Wall Street was closed yesterday for the Thanksgiving break so this is again leaving the market struggling for direction and again across the Atlantic, the big risk is seen as being that shares are looking rather overvalued.
At the stock specific level, big movers are few and far between although Rio Tinto is one of the best performers on the day so far, finding cheer off the back of two city brokers upping their target price on the stock. Some weakness in terms of the oil price and also concerns over how the rising value of the dollar will hit demand for raw materials is however ensuring gains are limited amongst the other natural resources plays.
We’ve got UK GDP updates later in the session, but by all accounts the big event could be what happens when Wall Street opens for just half a day after the Thanksgiving break. Any jitters here could easily tip the FTSE-100 well into negative territory as we go into the weekend.