Financial Market Comments from Philip Gillet, Sales Trader, IG Index.
At mid morning in London it is another positive start for UK stocks.
In mid-morning trading the FTSE 100 is currently up on the day, trading steadily at the 4430-4400 level.
Miners were among those making early gains, with Randgold Resources up 4.69% and Eurasian Natural Resources up 4.07%.
At the other end of the spectrum British Airways continues to struggle following last week’s announcement of pre-tax losses and finds itself down 1.15%.
Oil exploration group Tullow Oil took a sharp fall, down 2.31%.
This past month we have experienced bullish attitudes in the market place, but an indication of whether this will continue into June will come from the fate of the beleaguered car manufacturer General Motors.
GM’s board will today convene to finalise the bankruptcy plans of the car manufacturer, hopefully securing its future.
However Fiat has announced that it will not be in attending today’s bidding for GM’s European operations in Berlin and nerves are understandably getting jittery.
With 5,500 Vauxhall workers in the UK, and many more in its continental operations, the failure of GM to find a suitable bidder, and the possibility of large-scale job losses, could well be a signal that the bullish attitudes experienced in May were only fleeting and that the markets are still in for stormy weather.
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