Today's price action was dominated by a further slide in GBP down 0.4% against USD on the day and below the $1.29 level probing lows not seen since feb '19. This boosted the FTSE 100 but left the FTSE 250 unchanged on the day . The relief rally from last week's slump continued consolidating yesterday’s gains as the rally broadened with 27 sectors in the green to 12 in the red. Utilities, Electricity, Comms and REITS were among the losers.
Market sentiment showed some improvement as US and UK VIX scores pulled back from 2019 highs although the Fear and Greed Index remains at 35 showing Fear while the European VSTOXX remains relatively elevated. The underlying tone appears to be more bullish though protection is still been held against further volatility so markets may well be choppy in the coming days and weeks. While the 100, 250 and 350 indices have regained their 200MAs they are all below their 50MAs which highlights the relative speed of decline of the recent price moves. By contrast the AIM indices remain below their 200MAs but above their 50MAs as they have been lagging in the catch-up game post the 2018 bear correction
FTSE 100 +08%
DCC CPG and AUTO all rallied 3.5% or more while KGF disappointed on earnings and dropped 3.6% with SSE and SMDS down more than 2%
FTSE 250 (unch)
Double digit gains for the two of the most beat up stocks of the year INDV and MTRO rallied 16 and 15% respectively, PLUS also got a boost up 6% . In the dogs, PFG dropped 6.5% with INPP , 888, IPO, HICl , SXX all down 3% or more
AIM ALL Share (+0.3%)
Pharm , Technology, Gen Retail and O&G Producers were the outperfomign sectors in AIM. While many of the larger caps traded sideways, PRSM rallied 3.5% with BUR and ASOS gaining 1.5% each. Double digits gainers included YU (+62%). SRB +27%, KAT +25%, EME +22% while the big losers were 8PG -17% with GUN, CAB, PIRI all down between 12 and 20%
MTRO remains top of the flops with an open interest of almost 12%. The large open interest on SXX i suggest that the unwinding of these positions may boost the very depressed price rapidly.