It seems as though I have been doing this job since Noah left the Arc and still I haven’t a clue what I am doing or what I am ‘talking about’, nor for that matter do some of the traders interpret correctly the market’s mood.
We bounced out of the traps this morning full of the joys of Easter – don’t ask me why – probably a relief rally after such an uninspiring week before our religious holiday – FTSE down 1.7% last week. The FTSE opened illogically up 48 points. Initially oils, banks and pharmas all put their best foot forward. Then everyone realised there was no reason for these sectors to make any gains of consequence. So, oils gave up the ghost with BP ending the session close to being 2.5% down. Miners were reeking with fear – down 4-5%. Banks , having been up about 2%, are now down 2% for two reasons – firstly a +0.5% increase in capital requirements implemented by the BOE in an attempt to curb ‘buy to let lending’ and comments made by the FPC to the effect that prolonged uncertainty post BREXIT could be damaging for financial stability. It did NOT officially warn against BREXIT, though no prizes for guessing how Mark Carney would like the referendum to pan out!
Towards the close the DAX was up 27 points and the CAC just 11 points. The Street of Dreams got off to a very neutral start – DOW -35 points at 4.30pm. The FTSE 100 was down 5 points with a few minutes trading to go!