At 2.45pm the FTSE 100 is down 70 at 6780. One could hardly call it a ‘shake-out’, but investors’ resilience and the euphoria post QE and the advent of a new though maybe not fresh Greek government was bordering on ‘Lalaland!’ However some indifferent earnings in the US – Microsoft down -7% and Caterpillar down 8% – plus concern over snow storms in New York, which will inevitably curtail activity, has taken DOW down 290 points at the opening – -1.7%.
Volumes in London have not been monumental and some have started to wake up to the fact that Greek Tragedy is far from played out! The slightly disappointing GDP number for 4th quarter of 0.5% should not have made any difference as 70% of earnings from FTSE 100 are Dollar or Euro related. Year on year GDP is running at 2.7% – the best year since 2007.
Energy stocks are down between 0.5% and 1.5%. Mining stocks are easier by an average of 1.5%. Insurance has been very strong all month. The sector is taking a breather – down 1.5%. Royal Mail Group, after a downgrade by RBC Capital, is down 1.5% having been easier by 3.5%. Weir still falls – down another 3.5%. Utilities have been perky – Centrica up 3% after a Credit Suisse upgrade. Of those companies reporting today, Crest Nicholson is +3%, easyJet is +1.5%, having been 3.5% to the good. British Land is down 1.2% and PZ Cussons +2.5%.