Since that initial flurry of record-breaking energy on Tuesday this first week of 2017 has been incredibly sluggish, a trend that hasn’t disappeared this morning.
Nevertheless, even with a meagre 15-20 point increase after the bell the FTSE is tickling 7200, a level it could substantially break this Thursday if the market winds blow the right way. That final boost of momentum could be provided by the incoming services data, despite the fact that analysts are forecasting a dip month-on-month, from 55.2 to 54.8, as both the construction and manufacturing PMIs have exceeded expectations this week.
The FTSE is already benefiting from the positive housing sector landscape painted by Persimmon with its latest trading update this morning. The housebuilder rose 4.5% after posting an 8% increase in full year revenue to £3.14 billion and a 4% rise in both total sales, to 15,171 homes, and average selling price, to £206,700. This news has helped extend yesterday’s housing growth, itself inspired by a Deutsche Bank note stating there is ‘appealing value’ in the sector, with Barratt Developments and Taylor Wimpey both up around 2% apiece.
Over in the Eurozone the region’s indices suffered at the hands of their resurgent currency. The euro took 0.7% off the pound and 0.6% off the dollar, causing the DAX and CAC to dip 0.1% and 0.2% respectively with little on the horizon this Thursday to change the direction of trading.