Wall Street drifts but FTSE 100 makes gains
European markets are outshining US stocks today, with the FTSE 100 up 30 points as the close looms.
Investor enthusiasm for US stocks appears to be waning, now that we are less than a week away from the start of earnings season. High-growth tech names have undergone a bit of a reversal today, and the Nasdaq in particular looks rather overextended in the short-term, after a straight-line rally since mid-May that has seen the index and the growth complex come back into fashion in spectacular form. It is a different story in Europe, where indices have generally been able to hold on to at least some of their gains, but with Wall Street struggling it will be tough for European markets to really establish the groundwork for a sustainable bounce. Tonight’s Fed minutes should keep sentiment in check too, since investors will be keen to see if the record of the meeting sheds any further light on the hawkish shift seen in the dot plot, even if some of that shift in outlook was walked back in the weeks following the FOMC’s latest decision.
Investors will be hoping that today marks the nadir for Wetherspoon sales, and that the next few months will see the dire trend of late reverse. Having swept the board in performance terms last year the firm is now hoping that the end of the Euros championship will bring people back to its pubs, and that the end of restrictions will bring a fresh influx of customers. The shares have managed to hold on to most of the gains made since October, but shareholder patience will run out if things do not begin to change in terms of sales figures.