The outlook for the FTSE 100 is still in the balance

As noted here later yesterday afternoon, the FTSE 100 was the outlier amongst the major European stock markets in that it was the only one to squeeze out a higher close. However, the index closed just 7 points higher, at 8,184. The lack of traction in the Pound and rebound in oil was a clear driver for that, but at the same time the gain on the session was as modest as it was inconclusive. Leaving aside the potential impact of the US election, it seems the jury is still out in terms of assessing the true impact of the UK budget last week. To be brutally honest with that was not a budget for growth beyond any public sector GDP expansion and that is not necessarily good for the index- not at all. Leaving aside personal thoughts on all that, it is investors that will vote with their feet, if better returns are to be found elsewhere. In turth the only thing the FTSE 100 has going for it is relative value and dividend yield. Mind you, it has been that way for a very long time now. The index is set to reopen shortly at 8,178