Todays ftse with gdp

[cb275]

Why is the FTSE not going up here? We have had some really positive GDP results...

 

[Pi3141]

Im not an expert by any means, but I always think that US economic results have more of an impact on the FTSE than the UK ones.

 

[Luminox]

Arguably, UK stock indices are already somewhat inflated. Don't forget, the price of FTSE companies' shares reflects those factors from which GDP is measured. However, cable surged on the announcement, suggesting perhaps the two are not mutually priced relative to overall economic performance.

 

[gooseman]

interest rates

 

[ian23]

The markets has been a tad crazy of late, good news = bad for the market at this point for fear that Qe's will be curbed i think.

 

[iota]

I don't watch FTSE but considering sterling went north across the board, that's interesting.

 

[robster970]

uk gdp figures were inflated because the construction sector had materially improved as a consequence of government spending in large infrastructure projects. these will get cut by ConLib and the remainder of the FTSE constituents will continues as normal. QE, inflationary pressure, continuing devaluation of USD means US economy continues to leads and RoW follows for the forseable future. Blame Ben 'Zimbabwe' Bernanke.

 

[Pento]

FTSE constitutes companies whose main income is from international sources not purely domestic. So UK GDP will have less of an impact than the average joe will assume.

The market is forward facing. So good GDP means less QE and less stimulus for the economy going forward. Also, the players know the latest GDP doesn't count the recent spending review cuts which are bound to have a negative impact on growth.