The FTSE is up this morning in early trading, albeit just the four points. This is on the back of yet another positive session in the US yesterday, breaking new ground in the process.
It’s Brent Crude that is driving the markets today with little else on the economic calendar. Spreadex analyst, Connor Campbell commented “The black stuff has now crossed $64 per barrel, as commodity investors continue to rub their hands in glee at the potentially disruptive political purge currently underway in Saudi Arabia.”
“This allowed both BP and Shell both to post another half a percent jump soon after the bell, in turn helping to keep the FTSE at fresh 7570-tickling record highs.”
Holding the FTSE back this morning was security Group, G4S, which dropped 5% on news that it has revised its organic revenue guidance for the full year; while Associated British Foods dropped 3% despite positive earnings.
US equity markets started the week on a now familiar positive note, “with all three major indices closing at fresh record highs as a spate of proposed M&A deals lifted stocks” suggested Accendo Markets analyst, Mike van Dulken.
“Once more, the Tech-focused Nasdaq outperformed peers as investors digest the Broadcom/Qualcomm merger talks, while the reporting of a potential Disney/21st Century Fox led to the former helping the Dow Jones while the latter climbed 10%, aiding the S&P 500.”