Half of the constituent factors of the IC/Confidence Index recorded rock-bottom scores of -5 for January and the remainder faired little better - all registered negative values. Little wonder, then, that there was no change in stock market sentiment.
| Investors Chronicle Confidence Index | |||
|---|---|---|---|
| Month | January | December | November |
| Index value | -29 | -29 | -28 |
Paradoxically, January transpired to be a bullish month for the FTSE 100 index and the increase it produced was reflected in the scores for the factors within the stock market category of our index, which were up by one or two points. The FTSE 100 jumped 6.4 per cent on the month and recorded its best performance since 1989. It was slightly soured on the last day by bad economic news from the US. But, according to the January effect, if the market has a positive result during the month it indicates a good year overall for equities.
On a more negative note, the IC/Coppock Indicator for the Dow Jones index produced a sell signal for January and that does not auger well in the short term regarding the stock market factors.
Confidence stuck in the doldrums
Source: Investors Chronicle
