FTSE flat as markets struggle for direction

“After an early August rally for equities it has been harder going more recently and it feels like we are now in a holding pattern, waiting for something decisive to push the markets in either direction,” says AJ Bell Investment Director Russ Mould.

“The FTSE 100 opened the day flat despite the $101 billion injection into China’s financial system announced overnight.

“The negative news piling up on the global economy, relations between China and the US and a seeming second wave of coronavirus makes you wonder what stocks would be doing without the stimulus pledged by governments and central banks.

“Investors will be wary of reaching the point where the announcement of big financial packages no longer acts as a positive catalyst.

“Reports of big Chinese imports helped support the oil price on Monday with prices above $45 per barrel and at their highest levels since before the pandemic hit.

“Gold prices are starting to shine again after their recent tumble – trading above $1,950 and perhaps poised for another assault on the $2,000 mark if sentiment does turn decisively.”

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