The FTSE 100 is up by 0.13% on Thursday to 7,100.2, as the UK index failed to push on over the last month.
“If the FTSE 100 was a swimmer asked to tread water for as long as possible, it would score a gold medal. The market is stubbornly refusing to make waves and has gone nowhere since May,” says Danni Hewson, financial analyst at AJ Bell.
We are now into Q2 earnings season, while as of yet, positive news has not been transferred over to the FTSE 100 in the form of investor confidence.
“China’s second quarter GDP figures were slightly better than expected, but there is still a sense of unease about the country’s economic outlook. A similar feeling is spreading to other countries and suggesting that the post-Covid rebound may find it harder to keep going at a strong pace,” Hewson added.
“This might warrant ongoing support from central banks and governments, which in theory is positive for markets, but investor sentiment seems to be waning. Expectations have been so high for this massive economic surge, but a more lacklustre outlook could impact investors’ willingness to keep putting money into riskier assets.”
FTSE 100 Top Movers
Avast (13.3%), Experian (4.87%) and Prudential (3.83%) are leading the pack on Thursday with some pretty sizeable gain.
At the other end of the FTSE 100, oil giants and house builders are proving to be a drag, with BP (-2.23%), Taylor Wimpey (-1.6%) and Shell (-1.56%) making up the bottom three.
Avast
Avast, the cybersecurity firm, confirmed it is in “advanced discussions” with NortonLifeLock over the possibility of a merger between the two companies.
The acquisition of its rival signals the FTSE 100 comopany’s intent of consolidating its position in the competitive cybersecurity market.
While Avast said that there is no guarantee that the deal will go through, it has been reported elsewhere that the companies could come to an agreement at some point this month.
Experian
Experian revealed its upbeat quarterly trading update on Thursday, putting its results down to a stronger than anticipated recovery.
For the three months ending on 30 June, the FTSE 100 company saw its total revenue grow by 31% at actual exchange rates, while at constant exchange rates this figure was 27%.