The first week of July ended with a pullback for the major indices with the UKX down 0.7%, FTSE 250 down 0.9% while the TechMARK retreated by almost 1.1%. Given recent strength, these sell-offs do little to change the overall bullish nature of current sentiment in the bigger caps. Volumes are also lighter than normal so sunshine and US holidays may have traders away from their desks.
AIM had a flat day with both the 100 and All-Share consolidating the recent losses: both are sitting near fairly significant levels of support so next week’s price action will be revealing in term of their longer-term trends.
Oil had a good day up 1.2% and above $64. GBP lost 0.6% against USD and sits around $1.25. Better that expected jobs data in the US has some analysts questioning FED easing strategies which may have boosted the dollar and weakened stocks. Gold similarly dropped below 1400 in a reaction to dollar strength and is down 1.3% on the day. Volumes are lighter today owing to holidays so any real reaction will likely be seen Monday if at all.
For the week FTSE 100 is up 2%, FTSE 250 up 1.7% AIM ALL-Share down -0.6% while the TechMARK is up 2.1%
Market sentiment shows a small increase in US VIX up 15% to 13.7 while Europe is above 12