A mildly positive start is the call for stocks this morning, but after Friday’s jumpy trading session sentiment is mixed.
GFT is quoting the FTSE 100 index to open up 8 points from Friday’s close, at a level of 5,516. The German DAX 40 is expected to open up 9 points at 6,218, and the French CAC 40 index is forecast to open up 8 points at 3,730.
With the UK index having briefly breached the 5,600 barrier to post a fresh four-month high on Friday, this could give bulls some encouragement to stage another attack on the technically significant level, even despite the sharp about-turn witnessed by the markets after disappointing US consumer confidence figures.
Comments from Ireland’s finance minister, strongly rebutting rumours Ireland was on the verge of a debt crisis, should also help stabilise markets. But there is a sense that the volatility, missing from the markets over recent months, is back; evident from the pick-up in volume and long positions in the volatility index.
The spotlight economic event of the week will be the Federal Reserve’s interest rate meeting decision, due on Wednesday. Although rates are widely expected to remain unchanged, there is a growing view that the Fed may lean toward easing in monetary policy, so an absence of such a signal could trigger a sell-off. rate.
Martin Slaney is director of global dealing operations at GFT