It is just as well as that I am off to Devon for a few days as this market defies all logic! Politically we are hanging in rags. Messrs Verhofstadt and Barnier are trying, understandably to bully us in to hasty negotiations, talking about their growing impatience due to the adverse effect deafening silence could have on growth! Please! The earliest you could see us was the end of May – Macron etc – and then we were preoccupied with the worst General Election campaign in living history. The level of inertia is quite unacceptable. The problem is the Government is now weak. What it should be doing is not listening to peripheral waffle; they should be saying we are doing this and that!
Notwithstanding all these shenanigans at 2.20pm the FTSE is flat at 7515 and the FTSE 250 is up 1% – amazing. Is that us giving the EU 2 fingers or was it special performances by constituent stocks – a bit of both I think. Capita has recovered like the phoenix from the ashes – +15% (28 points out of 190 in FTSE 250). It looks as though there is another bid for Kennedy Williams – +8%. Property stocks have been barking dogs for some time and they have sat up and taken nourishment today. Ted Baker is +3%; Merlin Entertainment -1.5% having ben down nearly 3%. Even inflation reaching 2.9% from 2.7% had little effect.
In the big boys market, the Pound is little stronger hence the FTSE 100 has surrendered a 25 point initial gain. Miners and oils have been rather anaemic – slightly lower and drugs are -0.5% lower. The LSE is up 5.2% and is vying for the big boys’ yellow jersey. Credit Suisse believes there is a great growth story. The DOW in early trading is up 0.2%.