» » UK Market Narrative Fri 15 March 2019: New 2019 Highs for FTSE 250, 350 and AIM100

UK Market Narrative Fri 15 March 2019: New 2019 Highs for FTSE 250, 350 and AIM100

posted in: Market Narrative | 0

What is becoming increasingly clear is that Brexit’s lack of clarity has been its own undoing, on almost every level not least the political one.  UK markets have taken cheer this week form the increasing likehood that any Brexit will be delayed and that assuming a Brexit is reached at some indeterminate point in the future, it looks very likely to be soft.   Today the FTSE 350 rose 0.7% on good volume as the index reached new 2019 highs and appears to have broken out of a sideways range in evidence since end Jan. It is now within a hair’s reach of its 200MA as is the UKX. The FTSE250 has a bit more distance to cover but today’s rally of over 1.2% also took the MCIX to 2019 highs.  AIM  All-Share continued to lag the larger indices but also had a day in green up 0.5%. The TechMARK has been the outperformer in this year so far and has been the vanguard of rallies in the past: that it rose yet another almost 1% today and is testing 2019 highs is another positive sign that we may be due a Brexit relief rally.  If indices continue to rally on volume this may well a sign that capital is beginning to come back into UK markets which have been internationally barge-poled owing to the Brexit binary bet.

Sectors outperforming today included Tobacco +2.3%,  Life Ins +2%, Construction +2%, FS, T&L +1.5% the resource sectors did close mildly in the red as GBP strength weighed on  these shares while Brent was down 0.5% at the UK close but remains above $67. Copper rallied 0.7% while gold rose above $1300 again gaining 0.5% with iron ore up 1.2%

Market sentiment shows UK  and European markets bullish with VIX reading lower by 6-10% across the board

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