5th June 2017
Unfortunate news from London on Saturday night with another attack which will most likely result in a bit more of a clamp down by the security services. Enough is enough PM May said, and we may well start to see more pro-active action. The pound slipped on the news, while the FTSE futures have dropped a little bit from Friday’s close. That was a fairly decent bounce in the end for the 7545 long last thing Friday, managing get 7565 before the weekend shut down. Was a shame that the high was just below 7600, failing to reach the ideal entry at 7612 though.
Kicking off a bit in the Middle East too, with four Arab countries cutting ties with Qatar. Four Arab countries led by Saudi Arabia cut diplomatic ties with Qatar and moved to close off access to the Gulf country, escalating a crisis that started over its relationship with Iran and its support of the Muslim Brotherhood.
The World Bank expects the UK economy to grow by 1.7pc this year. This is only slightly below last year’s expansion of 1.8pc, and up from a forecast of 1.2pc in January.
FTSE 100 Outlook and Prediction
We have a big week this week, not just with the election on Thursday but also a backdrop with heightened tension – we have things kicking off in the Middle East which will affect oil prices, and general sentiment, terrorist “fears” in the UK and other major capitals as ISIS ramps up attacks during Ramadan, and a general sentiment of weakening economies. House prices in the UK fell for the 3rd straight month, and there is an escalating debt bubble forming in the UK. In the EU, rising bond yields could spell trouble for Italy, the eurozone’s third largest economy, which has struggled to control its growing debt pile, while Greece will probably need further loans. So, all in all, we should see the FTSE at 8000 soon!
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