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FTSE Gains During First May Session

Sat, 19th May 2018

The FTSE 100 got off to a strong start to the first session of the month, however there were some worries, with weak manufacturing stats raising questions about the state of the economy.

The FTSE 100 was up by 14 points towards the end of the trading day, while UK PMI data marked a 17 month low. This led to weakness in the pound, which boosted the FTSE 100, as so many companies in the FTSE 100 take their earnings in dollars. Meanwhile,Wall Street got off to a weak start to the first day of the month.

Traditionally, share traders are told to “sell in May and go away” because as the weather warms the markets quiet. This does not appear to be the case yet, this year, as the FTSE 100 hit 7,523, continuing the rally that had been seen towards the end of April.

Traditionally, April is the second-best month of the year for equities, but this year appears to be bucking the trends, with April’s returns being particularly strong with the huge rally towards the end of the month. There seems to be little hope of the pound recovering in the coming months, with poor GDP, a fall in inflation, and the resignation of Home Secretary Amber Rudd all weighing on the currency. This means that we could see more strong performances for dollar earners heading into May and beyond. The traditional market drivers may not apply given the political situation this year.

FTSE 100 Latest
Value7,877.45
Change18.28