Gap to fill
The reasons for strength in the FTSE 100 revolves around the following factors:
- Brexit now largely sorted. At least a ‘no-deal’ Brexit has been avoided
- The UK is ahead of the curve in the vaccination programme. Approaching 25% vaccinated
- The latest GDP data for Q4 was the worst in 300 years, but still not as bad as feared. GBP and FTSE positive
- The recent run higher in commodities has helped the FTSE100 higher as bank stocks and mining stocks are prevalent in the FTSE 100
- The FTSE 100 has more upside to recover from the COVID-19 drops compared to other European bourses, like the DAX.
So, on balance, the gap should be filled to the upside giving a decent medium term FTSE100 buy bias.
FTSE 250 still has strong seasonals too.
What's your reaction?