For the third day in a row the markets opened with nary a whisper – but which way will they turn as the session goes on?
Now sitting at a one week low of 6,763, the FTSE has repeatedly seen itself start slow, only to end in the red.
It does have a solid foundation for growth this Wednesday. Following a fall in US stockpiles, another output cut from Saudi Arabia, and economic optimism out of China, Brent Crude is above $57 per barrel for the first time in 11 months, leading BP (LON:BP) and Shell (LON:RDSa) 1.7% and 1.3% higher respectively.
However, losses in its banking sector are undermining the UK index, as is a 4.6% slide from Just Eat Takeaway (LON:JE).
At a glance, Just Eat’s fourth quarter menu looked delicious. UK orders rose 58% in Q4, helping the firm to a 60% increase in revenue during the final 3 months of 2020, and leaving it on track for a 50% surge in revenue across the full year.
However, its growth in the second half of 2020 came at a cost – underlying profit margins dropped from 42% in H1 to 10% for the full year, reflecting the substantial investments made in Q4. It was this disclaimer that caused investors to send back their order, knocking Just Eat below £87 a share.
The Eurozone was just as static as the FTSE. The DAX crept closer to 13,900 as it slipped 0.1%, with the CAC once again floating around 5,660 as it added a handful of points.
Awaiting the 2nd impeachment of Donald Trump, the Dow Jones is heading for another 0.1% increase after the bell, a rise that would leave it a whisker from 31,100. It appears that the political instability in the states is dampening investors’ appetite for risk, though not by enough to endanger the Dow’s current levels.
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