The FTSE 100 has extended its rally in 2017 to be up 13% since the Brexit vote a few months ago.
Editor’s Remarks: Banks and miners have helped spearhead the gains for the FTSE, with Glendora up 1.8% and RBS and Lloyds Banking Group up 1.7% and 1.6% respectively off the back of optimism over bank earnings as yields on bonds rise, as well as the stronger oil price. Additionally, the weak pound and strengthening dollar have supported FTSE listed firms with earnings denominated in dollars. Whilst it is a strong start to the year, with upcoming Brexit negotiations as well as the potential for Trump uncertainty following his inauguration, there are questions as to whether the UK and US markets can hold their rally.
What to watch: FTSE 100, S&P 500, GBP/USD, Glencore, RBS, Lloyds