FTSE 100 struggles for direction amid mixed signals

New data published yesterday showed signs of slowing activity in America. New unemployment claims rose to 245,000 in the week ended April 15 from 240,000 claims in the previous week, which is higher than estimates. The Philadelphia Fed Manufacturing index came in at-31.3 in April, while -19.2 was expected in the Bloomberg consensus. The Fed’s “Beige Book” revealed that officials have little growth expectations.

Miners weighed on the FTSE 100 yesterday, tracking lower iron ore prices. The FTSE 100 ended the session just 0.1% higher. Miners are still a drag on the index today, with Rio Tinto and Anglo American losing about 3% so far.

Today, the mood is also hampered by retail sales, which showed volumes fell more-than-expected, by 0.9% in March, the Office for National Statistics said.

However, the GfK survey showed consumer confidence is at its highest level in over a year, although it is still in negative territory at minus 30.

As a result of these mixed signals, the FTSE 100 index was struggling for direction this morning.

Things to read today:

Janet Yellen warns US decoupling from China would be ‘disastrous’ (Financial Times)

Euro Area’s Economic Upswing Intensifies on Resurgent Services (Bloomberg)