OptionsDesk broker Richard Perry speaks to Thomas Warner from Proactive after an intriguing week in the markets that has seen the UK's blue chip index rise to its highest level since late May at more than 7,730 points.
Perry gives his take on the reasons for the strength of the index, highlighting the short-term factors of some positive news on Friday from AstraZeneca about a breast cancer drug trial and some strong performances from London-listed mining companies.
He also highlights the longer term factor represented by the coordinated effort of major central banks, including the Federal Reserve, Bank of England and Bank of Japan, in pausing interest rate hikes amidst prevailing inflation concerns. The move could benefit several economic sectors.
Despite mixed PMI data indicating potential economic contraction, Perry notes an uptick in homebuilders that he attributes to the potential easing of mortgage rates. Nevertheless he describes Friday's rally off the back of ostensibly weak PMI data as "concerning."
Perry believes the FTSE 100's current trajectory could ultimately turn out to mark a turning point in market activity "to the upside, but only time will tell."