FTSE 100 Latest: Weakening Only Modestly After Poor UK GDP Data
FTSE price, Brexit news and analysis:
- The FTSE 100 index of the major London-listed stocks is falling after poor UK GDP data but by less than other major European equity indexes, suggesting some underlying resilience.
- Looking ahead, it may benefit from a marginally more upbeat tone from the UK-EU negotiations on a post-Brexit arrangement.
FTSE 100 outperforming despite UK GDP miss
UK GDP data for May failed to live up to expectations but that hasn’t prevented the FTSE 100 index of the principal London-listed stocks from falling by less than the major continental European indexes Tuesday, suggesting some underlying strength in UK equities.
Early in the European day, the FTSE was down by 0.9%, compared with drops of 1.7% for both Frankfurt’s DAX and the CAC 40 in Paris. That perhaps reflected some weakness in the British Pound, which helps the many companies in the FTSE with overseas interests.
FTSE 100 Price Chart, Daily Timeframe (February 18 – July 14, 2020)
Chart by IG (You can click on it for a larger image)
Looking ahead, the latest leaks from the talks between the UK and the EU on their relationship after the Brexit transition period ends on December 31 have seemed less bellicose than previously – arguably a positive for both the FTSE and GBP. For example, reports have suggested that the EU may drop its previous insistence that the UK continues to accept the jurisdiction of the European Court of Justice.
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--- Written by Martin Essex, Analyst and Editor
Feel free to contact me via Twitter @MartinSEssex
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.