FTSE 100 Flat at Start of the Week

MONDAY MARKET UPDATE: It was a quiet trading day in the UK, and US markets were subdued as a result of Veterans Day

Alanna Petroff 12 November, 2012 | 6:24PM

The trading week got off to a quiet start on Monday as Americans observed Veterans Day and investors waited to see if the next round of meetings amongst European leaders might bring any signficant announcements.

While both the FTSE 100 and FTSE 250 had been rising in the morning, they dipped down slightly by the close of the day. The FTSE 100 edged back by 2 points to close the day at 5,767, which is essentially unchanged from Friday's close. The FTSE 250 index fell back by 39 points, or 0.3%, to close at 11,803.

The markets were rather placid at the start of the week, but FOREX.com's research director, Kathleen Brooks, says that it's a "big week" for the eurozone and it all kicks off with a late Monday afternoon meeting in Brussels between finance ministers from the eurozone.

"We expect to hear from them some time later this evening once the meeting has concluded," said Brooks. "We already know that Greece won’t get its next tranche of bailout funds in time for a €4 billion bond redemption payment that is due on Friday. However, there will be no default, as the EU authorities will deal with the payment. Thus, although Greece’s parliament signed off on the 2013 Budget and another round of austerity measures, it still won’t get the money."

The lack of market response over the current Greek bailout quandary shows that investors are currently feeling "crisis fatigue", explains Chris Beauchamp, a market analyst at IG.

"More of a reaction seems likely tomorrow as Athens makes a bid for emergency funding from bond markets in case the bailout tranche does not arrive in time," said Beauchamp.

Click here to see which specific companies moved ahead and which companies fell behind in daily London trading.

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About Author Alanna Petroff

Alanna Petroff  is a financial journalist with Morningstar UK.