The FTSE 100 could arguably be lower but oil markets ride to the rescue

Of all the reports we have seen lately regarding the state of the UK economy, there are very few that bring joy to the reader. So, it is rather a bleak outlook out there for UK PLC just now, but take a look at the FTSE 100 and see where it is. The index is in real terms not much below the record highs it has set this year and even this morning, despite being lower, it is holding up pretty well, especially when one factors in where UK yields are right now as well. 

Quite honestly we do not think the FTSE 100 has legs from here, but we also concede the impact of the oil price, which is a massive positive for the index when oil prices rise like they are right now. We should also note that the FTSE 100 is an international index these days, more so than it is reflection of the domestic backdrop. That said, we have no love for it at the current levels folks. The FTSE 100 is right now at 10,787