Are we at a major turning point for markets? The FTSE 100 is having another bad day, falling sharply at the market open but then quickly narrowing those losses to only trade 0.4% down at 7,098. Yesterday we saw similar erratic behaviour with the index falling and then trying to claw back towards the end of the day.
This suggests that investors are happy to buy on the dips, but it also suggests we’re entering a more fragile state for the market.
Value stocks trumped defensive names on the FTSE on Wednesday, with energy, banks and miners trying their best to move forward, while pharmaceuticals, tobacco and consumer goods acted as a drag on the index.
“Inflation is front of mind once again, with the latest UK figures considerably higher than expected, and following a similar trend in the US. Inflation is good for commodity producers and stokes the fire for interest rates hike, which benefits banks – hence explaining the top movers on the FTSE,” says AJ Bell financial analyst Danni Hewson.