FTSE 100: Filling The Gap

Published date: .

The reasons for strength in the FTSE 100 revolves around the following factors:

  • Brexit now largely sorted. At least a 'no-deal' Brexit has been avoided
  • The UK is ahead of the curve in the vaccination programme. Approaching 25% vaccinated
  • The latest GDP data for Q4 was the worst in 300 years, but still not as bad as feared. GBP and FTSE positive
  • The recent run higher in commodities has helped the FTSE100 higher as bank stocks and mining stocks are prevalent in the FTSE 100
  • The FTSE 100 has more upside to recover from the COVID-19 drops compared to other European bourses, like the DAX.

So, on balance, the gap should be filled to the upside giving a decent medium term FTSE100 buy bias. 

Gap to fill

FTSE 250 still has strong seasonals too.