Until the FTSE 100 breaks the historic 7,877 and 7,903 levels, investors will be fixated on each tick in the FTSE 100 and any influencing news.
As we start the third trading week of 2023, the news flow is relatively benign – and market movements muted – with US markets closed for Martin Luther King day.
This saw last week’s momentum continue into the Monday session as the FTSE 100 edged towards key historic levels of 7,877 and 7,903.
“The attractiveness of the FTSE 100 is undimmed, with the index set to flirt again with record highs in early trade. The record closing high of 7,877 is in reach, and another surge in buying could see stocks surpass the best level of 7903, seen on May 22, 2018,” said Susannah Streeter, Senior Investment and Markets Analyst, Hargreaves Lansdown
“Hopes that inflation will keep descending from its peak in the US, after encouraging data last week, saw Wall Street end on a Friday high, with positive vibes spilling over to Monday trades in Asia.”
FTSE 100 updates
There were no major updates from FTSE 100 companies on Monday after a raft of festive trading updates last week helped lift the index.
However, later in the week investors expect to receive updates from Burberry, Antofagasta, Experian and numerous other FTSE 350 companies.
China and US data
After lifting almost all COVID restrictions, China will release GDP figures and make an interest rate decision this week, which have the potential to set a tone for markets.
Investors are looking to China to help propel global growth and a strong reading will be taken well by equity market.
The US will provide more insight into their economy with retail sales for December after a robust Non-Farm Payroll number suggested resilience in labor markets.