The FTSE 100 managed to stem the losses of the last two days on Wednesday morning, though it failed to make any tangible progress either, sitting just a handful of points higher early on, says AJ Bell investment director Russ Mould.
“Energy stocks did a lot of the heavy lifting after oil prices hit 11-month highs on continued reductions in output and on hopes that strong Chinese economic data bodes well on the demand side.
“A lot of attention is centred on the US where, with the inauguration of President-elect Joe Biden just a week away, a second impeachment of incumbent Donald Trump is in the works after the events at the Capitol building last week.
“So far the markets have been remarkably relaxed about the political turmoil across the pond but that could change if there is any escalation in tensions. Investors will be relieved when the torturous transfer of power is finally completed.”