Tuesday, 10th July: The FTSE is determined not to let the government stop it from making gains. After yesterdays shock resignation from Boris Johnson the index closed higher and also opened higher this morning. However, these efforts were short-lived as the gains dropped into the afternoon which left the index trading flat at around 14:15 (BST).
At the top of the index was online grocer Ocado, up almost 6.0% after their interim update which initially had them in red territory, but the group managed a 180-degree turnaround on the index after the market showed their support for them regardless of the cautious interim update, largely due to the flurry of international deals they have lined up. The group have outshone all the other members on the blue-chip index with regards to 2018 year-to-date share price growth and have increased 154.7%, with Evraz coming in second but nowhere near at 53.8%.
Economic data released today was upbeat and painted a picture of a recovering economy after a sluggish start to the year. GDP was up by 0.3% from April to May, 0.2% in the three months to May, and 1.5% when compared to May 2017. The positive GDP data has consequently encouraged the notion of the Bank of England increasing interest rates by 25 basis points to 0.75% next month. If the Bank of England go ahead with the rate hike, it will be noted as the second occurrence in over a decade. June and July data are likely to be positive as well due to the rare summer sunshine we have been experiencing which has encouraged consumers to spend, and of course further contribution from the World Cup this month.
At the end of the day, the FTSE 100 managed to cross the finish line marginally above the flat figures of the afternoon and closed 0.05% higher at 7692.