FTSE 100 A Safe Short Term Put
Since the beginning of the month the FTSE 100 has been on a downwards trend and on Tuesday it reached a low of 6,597.80.
The latest fall in price came as a report was released showing that manufacturing activity in the UK expanded at its slowest pace in the past 17 months during September. According to the report the UK’s manufacturing PMI fell to 51.6 last month from 52.2 in August.
It was expected that the index would climb to 52.5 in September.
In general there are concerns over the health of Europe’s economies, especially after the European Central Bank suggested it may move to a looser monetary policy. The ECB is due to meet for a policy meeting in the coming days, further interest rate cuts are expected which is sure to hit the markets. As a result it is likely that the FTSE 100 will fall further in the short term.