After starting the week on a bright note, the FTSE looked set to repeat yesterday’s regression. That was, before the Dow Jones opened with a relatively meagre rally, that proved enough to give the FTSE a burst of energy and finish the week in the green.
Having dropped by just under a percent by midday, the FTSE then recovered during the afternoon, up by 0.34%, to 5,842, as the final bell went. At this level, it is still short of the 6,000 point benchmark which has become something of a target since the pandemic kicked in (though I can remember the target once being 7,500 points).
Forgetting the larger picture, however, we can take some consolation from finishing the week on a tentatively positive note. This was only made possible, mind, by reassurance offered by the Dow Jones. Initially, US politics had offered the FTSE cause to falter around lunchtime, with Spreadex Financial Analyst, Connor Campbell, saying that:
“This appeared to be on fears that Congress is nowhere near getting a covid-19 spending plan signed off, with a huge gap between the $2.4 trillion the Democrats want, the $1.5 trillion Trump is willing to agree to, and the measly $1 trillion cap set by Republicans.”
Later, these fears were somewhat put out of mind by short-term gains from the Dow.
“It helped that the Dow Jones avoided dropping to 26550 as suggested at point by the futures, instead opting for the same kind of wishy-washy gains as the FTSE. Adding 0.2%, the Dow finds itself lurking just above 26850, but lacking the confidence to push beyond that level with any gusto.”
Now up 0.31%, to 26,899 points, the day is still young for the US index – with every chance that events later in the day will in some way inform the FTSE open next Monday.
In a less cheery mood on Friday, the DAX fell by 1.19%, to 12,456 points. Following close behind, the CAC shed 1.12%, to 4,709.