Markets paused for breath ahead of the second quarter earnings season which begins towards the end of the month. We’re now in a short period with limited corporate news to drive trading volumes.
Second quarter numbers may show divergent fortunes. Investor expectations have arguably been too high for many sectors including travel and leisure, and there could be some disappointed shareholders once the next set of figures are out, particularly if the outlook isn’t as rosy as they hoped and that leads to earnings downgrades.
“For now, the new trading week kicks off with a whimper, with the FTSE 100 flat at 7,119. The FTSE 250 only fared slightly better with a 0.2% gain while markets in mainland Europe were generally down. In Asia, Japan’s Nikkei fell 0.6% while China’s SSE rose 0.4%,” Russ Mould, investment director at AJ Bell.
“Brent Crude oil nudged ahead 0.3% to $76.41 per barrel. Oil producers’ cartel Opec will today continue talks about increasing output. Failure to strike a deal could push up the price of oil further, adding inflationary pressures to businesses and consumers around the world.”