Wed, 21st Nov 2018
A rally in the banking sector has helped the FTSE 100 to recover quite sharply, however US markets went steeply into reverse. London’s top-flight share index was boosted by almost two percent early in the trading day, but ended the day up by just 1.25%, sitting at 7026, although this is still a significant bounce back after last week’s heavy sell-off.
HSBC, the second biggest company in the index, gained almost five percent after reporting that it had enjoyed a better than expected boost to quarterly profits. The company brushed off immediate concerns regarding Brexit and the tension between the US and China.
The FTSE’s gains were in line with gains on the continent, although US shares did erase early gains, and the NASDAQ closed 1.6 percent lower, falling to levels last seen back in April. The NASDAQ was hit by difficulties in tech shares, with Amazon and Netflix some of the worst performers. Investors were unhappy with the mixed earnings reports that have come through in the recent reporting season.
The performance has left Asia and Europe, which typically follow the direction of the New York market, faced with the prospect of a weak opening on Tuesday morning.
The FTSE 100 is still looking to end October on a rather weak note. It entered the month above 7,500, and it is unlikely that we would see a significant rally over the course of the next two days to bring it back up to such a level.