We have all inhaled the intoxicating fumes of this relief rally from the previous two days (6% rally) taking us back to above 22nd June level, that today, not surprisingly is a bit of an anti-climax. Trading conditions are sepulchral. It is as if fund managers have called for the Rennies’ – such is the level of trading indigestion. Volumes are thin and there are limited reasons for asking the market to select another gear. This is an old fashioned relief rally – pure and simple. In pure terms the FTSE from 23rd June fell 9% to its day ‘low’ to up 9% as of this morning. It just goes to show how political hysteria and economic uncertainty can unnecessarily damage markets.
Today the FTSE 100 has been bobbing around either side of par. At 2.40pm the FTSE 100 is up 15 at 6375. The DOW has just opened and is 40 points to the good. Materials, utilities, health care and consumers have made modest gains and mining has seen a smidgen of profit taking. Of the companies that have reported today– SERCO is up 2.5% as CEO Rupert Soames continues to show managerial skills. Tullow has enjoyed a decent bounce on a good trading statement and John Wood, which was quite badly trolleyed at the opening with profits likely to be 205 lower (already priced in) was up 0.75%. We need some news flow to drive markets now that BREXIT is no longer the ogre it was a week ago.