After struggling with that 7200 level for the last 3 weeks, the FTSE smashed through it just before the market closed on Thursday, and with another half a percent worth of growth this morning the UK is trading at its best price since mid-January. There wasn’t necessarily much reason behind the UK index’s surprise surge, so it will be interesting to see whether it can maintain its current levels as the day goes on.
The FTSE will get something of a test this Friday in the form of its manufacturing and industrial production readings. Both figures are forecast to see sharp drop month-on-month (the former from 1.3% to 0.3%, the latter from 2.1% to -0.2%); however, the tendency recently has been for the pound to absorb any bad news data-wise, something that may only lift the FTSE higher. Talking of sterling, the currency got off to a mixed start this morning, slipping back below 1.25 against the dollar while keeping its head above 1.17 against the euro.
There was a similar situation over in the Eurozone, the DAX and CAC jumping another 0.5% and 0.3% respectively. That puts the German index at a 10 day high, and only around 100 points away from the levels it was trading at by the end of January.
