The FTSE 100 index had a good run in March, although its rise was thwarted by the problems occurring in Cyprus, but it continued its upward trajectory in the first few days of April.
| Investors Chronicle Confidence Index | |||
|---|---|---|---|
| Month | March | February | January |
| Index value | -29 | -27 | -29 |
Considering the state of the general economic statistics within the UK, this upsurge is somewhat incongruous. The factors for our IC/Confidence Index for wages, new issues, the sunshine anomaly, unemployment and the oil price are all on the lowest score possible. The only factor that is positive is the one for the retail prices index - but even its score was down on the previous month. All of these factors should be bearing down on the FTSE and curbing its flight upwards. There are two areas to take into consideration. Firstly, there is encouraging data being released in the US and the subsequent increase in the Dow has influenced the FTSE; and secondly, it is the end of the tax year here in the UK. Investors turn to the stock market to make use of their Isa allowances.
Although all the factors within the four categories of the IC/Confidence index remain tenaciously stuck in the doldrums the FTSE remains resilient to their influence and is proving to be formidable – certainly in the short term.
Lack of confidence is not pulling down FTSE
Source: Investors Chronicle
