MIXED signals from eurozone politicians and the US Federal Reserve left traders nonplussed yesterday as the FTSE 100 Index ended up exactly even for the session.
As fresh rumours of plans to manage a Greek exit from the euro circulated, markets were looking for clarity as to whether the country would be given more time to deal with its problems, but German chancellor Angela Merkel reiterated her stance that she would be awaiting the contents of the next troika report before making a decision.
David Jones, chief market strategist at IG Index, said: “Rumours of Greece being allowed to have some sort of temporary exit from the euro were met with scorn from most quarters. It sounds too much like an announcement of being a ‘little bit pregnant’.”
After spending most of the day in the red, the FTSE 100 ended back where it started at 5,776.6. With little corporate news and conflicting statements on the likelihood of more economic stimulus from the Fed, it was left to broker comments to move individual shares.
The mining sector was weighed down by reports from Australia that the government was preparing for the end of its resource boom, as well as a broker downgrade by Jeffries on Anglo American which saw it fall 3 per cent to 1,885p.
NEW YORK: Wall Street rose on news that the European Central Bank is considering setting yield band targets in a new bond-buying programme that could help contain borrowing costs for Greece, Spain and other debt-laden eurozone countries.
The Dow Jones industrial average was up 82.31 points, or 0.63 per cent, at 13,139.77 while the Standard & Poor’s 500 Index was up 7.71 points, or 0.55 percent, at 1,409.79. The Nasdaq Composite Index was up 16.29 points, or 0.53 percent, at 3,069.70.
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Weather for Edinburgh
Friday 24 May 2013
Temperature: 3 C to 12 C
Wind Speed: 18 mph
Wind direction: North east
Temperature: 7 C to 17 C
Wind Speed: 13 mph
Wind direction: West