Is the FTSE going to tank on Monday following the downgrade news?

StevieJ

I should imagine that 175 billion of extra QE coming our way will have more impact (positive) on the stock market than the credit downgrade.

brasso

at11 wrote: »

the FTSE has been bullish and rallying since last year and the fact its gone over and stayed way above the 6000 mark, i cant but help this UK downgrade is going to send everything downwards, below 5500 levels, possibly hitting 5000!

Not quite sure why you can't help but think there will be a 20% drop on this news. Like others have said, I also think there will be little impact.

First, as you say, it's been widely expected for a while. If anything, with the uncertainty finally removed, the markets might be relieved.

Second, we've seen ratings agencies adjust ratings for France and the USA recently without any marked effect.

As someone said, the Italian election is more significant. From what I read, Berlusconi is unlikely to get back into power, but if the result means another weak and chaotic coalition, the markets are likely to get nervous. And don't forget the German election in late summer which is arguably even more significant, especially as Frau Merkel is trailing in the polls.

If you're a day trader you might well make some money by gambling on a Monday dip, but if you're an investor looking longer term, I doubt there will be much change.

gozomark

Its unexpected events that generally move markets, not expected ones

Thrugelmir

garybarlowsbeard wrote: »

I agree with those who see it having little impact. See it staying pretty steady 5800-6300 throughout 2013.

Stock markets depend on corporate profitability looking forward. While private investors are piling in. Some fund managers are taking profits. Vodafone being one share.

cepheus

FTSE100 finished up at 6353 +0.3% at IG between the official close and 10:15 Friday, so it is pricing in a slight rise so far.

benalder284

For long-term investors does it really matter anyway - the market will go up and down suddenly any number of times before I plan to need access to my S&S ISA in 2032.

mark55man

Agreed and presuming you are drip feeding money in, periods of low values give you more bang for buck - so long as you don't end on a dip - but that's way you change your portfolio balance as you get nearer the date

antici

More important for FTSE this week are the Italian election result and USA Budget talks. The FTSE 100 is largely an index of companies with a global outlook and the above two events are significant globally, the GBP downgrade is not.

merlingrey

Most of the impact will be seen on the £ vs $.

Probably will trade to $1.35-£1 by the end of spring at this rate.

cepheus

FTSE 250 up as well as the 100 in early trading. Long gilt down slightly but I wouldn't have noticed since it was in a downtrend anyway.