Stocks set to stage a mild bounce
THE FTSE 100 index closed at its lowest level since July 20 on Friday, but the early call from GFT is for bargain hunters to step in and lift the index back above the 5,200 level this morning.
RETURNING BUYERS WILL FEEL PRESSURE
GFT is quoting the FTSE to open up 13 points from Friday’s close, at a level of 5,208. A similar start is expected for the German DAX, quoted up 15 points at 6,020, and the French CAC is forecast to open up 10 points at 3,536. So some buyers are set to return but their conviction is likely to come under pressure with alarm bells still ringing from a surprise jump in US initial jobless claims data on Friday.
THIN TRADING VOLUMES TO CONTINUE
Nevertheless the Dow recovered over 50 points from its lows and European stocks will be taking a mildly positive steer from this. But the thin summer trading volumes are likely to continue and stock markets can expect to struggle to find direction.
Martin Slaney is director of global dealing operations at GFT