It is 3.30pm and markets in London have only just over an hour to go. Certainly, London has done well to hold on to much of its gains in the FTSE 100 - +63 at 7179. However, the rest of Europe has surrendered a fair bit of its gains. I suspect the uncertainty that surrounds the Italian election and the unsatisfactory outcome of the German coalition results has left punters and investors a tad under-whelmed. As I scribe the DAX is only 36 to the good at 12127, having been up over 100 points. The DOW, despite Trump’s ‘huffing and puffing’ over possible spurious negotiation with North Korea and a slightly calmer approach to an ill-thought-out trade war, has shown little enthusiasm to crack on - +20 at 24895, with the NASDAQ a little cheerier - +40 at 7371. Target ‘missed’ and its shares are down 4.15%. Conversely UPS is 2% to the good.
Here in London as previously discussed banks and miners have led a qualified charge, providing much of the extra value. Of those companies that reported Intertek has done well +5.26%. Tesco and Morrison are the best performing supermarkets having shown the best sales growth through Kantar. Some of the rest must hang their heads in disappointment rather than shame – Just Eat -10.10.8%, Headlam -10.5%, and Aggreko -4.28% - an improvement having been down all but 9% near mid-day. This market is hard to read as though volatility has been less violent in this session, there is a feeling it may not be all over. What seems to be accepted is that the economic basics have not changed.