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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.

Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Connor Campbell

Connor Campbell

Connor joined Spreadex in 2014 as part of a newly expanded financial analyst team after graduating from the University of Southampton with an MA in English. His focus is on providing Spreadex's customers with up-to-date and informative news, and is responsible for the market analysis found on the Spreadex website.

Connor produces three daily market updates, a daily stock earnings preview, a weekly financial market preview piece every Friday, a round-up of all the big financial stories making the weekend press every Monday morning and regular stock market features.


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