The FTSE 100 traded 0.6% higher on Tuesday after yesterday’s weakness but the question for investors will be whether it can last, says AJ Bell investment director Russ Mould.
“Several times in recent trading sessions the index has started out on a positive front before faltering amid a wave of negative headlines on the Covid-19 pandemic.
“New data underlined the lockdown-linked jobs crisis brewing in the UK and against this backdrop it is no surprise to see the more domestic-led FTSE 250 mid cap index lagging behind the more international-focused FTSE 100.
“A lot of focus will be on the mid-February update from the Government on lockdown restrictions with most ministers looking to downplay expectations of any meaningful easing of the curbs at that stage.
“Sentiment looks frothy across the pond where the release of results from heavyweights like Apple, Microsoft and Tesla seems to be exciting retail investors, with mounting concerns about a potential bubble which could burst, particularly if earnings disappoint.”