The FTSE continued to struggle with the 7000 mark; having hit that landmark level last Friday investors have shown reticence in sending the UK index any higher without some kind of catalyst. The pound wasn’t much more exciting, falling against both the dollar and the euro as the morning went on. Over in the Eurozone the DAX and CAC were just as uninspired. The best the German index could manage was re-crossing the 11400 mark, failing to mine a strong Ifo business climate figure (which arrived at a better than forecast 111.0) for much market-juice.
The European indices are likely being capped by their banking stocks, which are all in various shadows of red this Monday. That’s thanks to latest drama surrounding Monte dei Paschi; Italy’s oldest bank sparked another round of hand-wringing after being forced to turn to shareholders as it tries to raise €5 billion to avoid a taxpayer bailout. This news was poorly received by investors, the stock falling 8.5% at the open to trigger a trading suspension AND a general sense of unease among its banking peers.
Looking to the US open and the Dow Jones is still struggling to find the momentum need to send it to 20000. The index’s rapid rise stalled thanks to the Fed’s expected rate hike last week, leaving the Dow trapped around 19900. This afternoon there isn’t much to cause a change, though an increase from 54.6 to 55.2 in the flash services PMI might perk the index up.