FTSE 100 and the US markets

[grubs50]

Being relatively new to trading, i am wondering maybe i am mistaken in my belief that the FTSE100 virtually tracks or reacts to the US markets (i.e DOW and S & P 500). This is just from abt 2 months of studying both markets........is it always like that or just a temporary thing? and if that is the 'normal ' partern, can someone please explain why it is like that?

 

[bonsai]

its like that for all the obvious reasons, but there are still
considerable variations.
I keep a check on these things from time to time.
here is a chart (need updating but you will get the point.)
only 75% correlation which may be less than you thought ?

 

[grubs50]

Hmm............. i would have thought it would be higher if i was being sincere but what about in comparison with the DOW?

 

[grubs50]

And did u also take the time difference into consideration cos from my observation, the opening numbers on the FTSE seems absolutely dependent on the closing US figures i.e DOW and S & P 500?

 

[bonsai]

just for info, the chart is based on daily close of both.

if you want anything more complicated I think you
may struggle to find it. So you will have to do your own calcs.

suspect this chart says it all though.