FTSE 100 sluggish on ‘Blue Monday’

“The FTSE 100 was struggling to get into motion on ‘Blue Monday’ – the so-called most depressing day of the year which in 2021 has the extra kicker of a global pandemic,” says AJ Bell Investment Director Russ Mould.

“The Blue Monday concept, covering the third Monday in January, was developed by a travel company in the mid-noughties to describe a time when Christmas is in the rear view mirror, bills need to be paid, the weather is gloomy and New Year resolutions may have been abandoned.

“In previous Januarys the response might have been to book a summer break but this year that’s a little more complicated, even if there are signs that over-50s are taking the plunge in anticipation of being vaccinated. The pace of the vaccine roll-out remains a key driver of investor sentiment.

“After a strong start to 2021 for UK stocks, investors definitely lost some of their resolve last week and with US markets closed for Martin Luther King Day on Monday the FTSE 100 was treading water at the start of the new week.

“One encouraging bit of economic data filtered through overnight with China proving to be the only major economy to avoid a contraction in 2020. It was first into the crisis and arguably one of the first out of it.

“Any positivity around this news was tempered by signs of a second wave of infections in the country and news of a fall in retail sales.

“Dr Martens confirmed plans to put its best foot forward and float on the stock market in February. It isn’t raising any new money thanks to its strong internal cash generation.

“The footwear brand has attracted criticism in some quarters for a deterioration in the quality of its product in recent years but it will want to focus on a global growth opportunity with its products favoured by celebrities such as Gigi Hadid and Rihanna.”

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