The FTSE 100 was struggling to hold firm on Monday as investors braced for the return of key US economic data points after the government shutdown prevented the release of potentially market-moving data.
London’s leading index was down 0.2% at the time of writing after swings between minor gains and minor losses.
“Global markets are waiting on the overdue economic data from the US – which will potentially be released at the beginning of this week,” explained Emma Wall, Chief Investment Strategist, Hargreaves Lansdown.
“During the record long shutdown, inflation and jobs data for October was not collated or released, which has left policy makers in limbo.
“These two data points are key for the Fed to help determine whether they continue to cut rates when they meet next month. The S&P 500 fell on Friday, following a strong start to the week, as the market digested what the lack of data might mean for the dot plot.”
London’s market also largely shook off concerns from Asia, with investors facing fresh worries about Taiwan amid increasing tensions between China and Japan.
“The FTSE 100 managed a steady start on Monday despite volatility in Asian stocks and a lacklustre end to last week on Wall Street,” said AJ Bell investment director Russ Mould.
“Shares in Japanese consumer-facing stocks came under pressure as China warned its citizens not to visit the country amid simmering tensions between the two sides over Taiwan.”
There was weakness in China-focused stocks such as miner Anglo American and financials HSBC and Prudential.
But several upbeat stories helped keep the FTSE 100 flat on Monday.
WPP was the FTSE 100’s top riser after the Sunday Times report that competitor Havas was considering a bid for WPP, which is down 60% on the year. WPP shares were 4% higher.
Pershing Square Holdings was 2% after announcing a fresh $100m share buyback.
There was interest in defensive safer sectors such as utilities with SSE adding 1.5% and BATS rising over 2%.