I am running out of metaphors, similes and analogies to describe the day-to-day machinations of equity markets. As for attempting to trade equities; well it’s a joke. It feels a bit like a very cheesy action replay of ‘It’s a Knock-out!’ It’s like a Fred Karno custard pie circus. New York’s equity futures seem to be driving European markets since Asia, with China shut, is only firing off 3 cylinders. The handling of the Japanese economy with Abenomics to the fore is just laughable. When will they learn that unless they indulge themselves in massive infrastructure projects their economy is doomed to everlasting damnation? Japan’s debt mountain is eye watering with 10-year bonds yielding just 0.2%.
The FTSE 100 has been up and down like the proverbial ‘whores’ drawers’ all through the session – down 25, flat; up 40, down 90, down 70, then futures in the US rally to falt; so the FTSE is only down 30 at 5659 at 3.00pm. Neurotic is not a strong enough adjective to describe traders’ mood. Hysterical may be too strong – perhaps somewhere in between.
Let’s put some meat on the bone. Oils are quite steady only down 1% as a sector. Miners are all over the place – down 4%. Insurance has experienced another difficult session with Pru down 2.5%, RSA -2%, Aviva -1.5% and L&D just 0.3% easier – we have seen some buying interest. Banks have been dispiriting – Barclays and Standard Chartered both down 4%, Lloyds -2.9%, RBS 2.5% and HSBC only 1.25%. Deutsche Bank is still full of woe – down another 4%.
However on the bright side the following are up – BT +1%, Vodafone +0.9%, NEXT +3.5%, Diageo +0.9%, M&S +1.2%, Wolseley +2.5%, easyJet +2% and Astra Zeneca +0.75%. Turn your back for 2 minutes and it could be all change!