Posts from — July 2009

Financial Market Comments from David Jones, Chief Market Strategist, IG Index.

The FTSE 100 continues to extend its winning streak for the tenth day, currently up 34 points in the morning session.

Yesterday saw the UK’s leading index close at its highest levels since January and the positive sentiment has continued into today.

Recently the markets have been data driven and this trend continues with Vodaphone. The mobile phone giant reported an increase in quarterly revenue of around 10%, and its share price responded with a rise of 2.14%, taking the company up to 119.40.

Elsewhere in the market the London Stock Exchange Group is up 4.31%, alongside bankers RBS and insurers Legal & General, up 4.31% and 3.96% respectively.

However this morning investors may be wondering whether the markets have got ahead of themselves following the release of downbeat second-quarter UK GDP figures.

The news that the economy contracted by more than 0.8% between April and June will leave many wondering whether the run of rallies is overdone.

Over in the US, Wall Street is expected to open higher off the back of positive news from the futures markets, however we will have to see whether the release of US consumer confidence data helps fuel a rally or provides some more cause for reflection.

Spread betting carries a high level of risk to your capital. You may lose more than your initial investment. It may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.

Good Luck!

DB

The above comments do not constitute investment advice Clean Financial accepts no responsibility for any use that may be made of them.

Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.

Financial Market Comments from David Jones, Chief Market Strategist, IG Index.

In early trading, the FTSE is around 20 points higher, with retailers in focus.

A trading statement from supermarkets business Morrison has propelled the food retailer to the top of the leaderboard this morning, up around 8%.

The company has said that a solid start to the year has continued into the second quarter and it expects full year results to be ahead of expectations.

The strong open by the shares has shaken off a decidedly lacklustre few months of performance, and puts the price back to levels last seen in February.

There are also some early signs that traders are happy to bank windfall profits at these levels, and wait to see if the FTSE manages to break the 4500 barrier, before considering any more significant upside for Morrison.

Last night’s gains in the US have ensured another solid start to trading this morning in the UK.

The FTSE 100 is now within 50 points of the best levels achieved in the bounce back from the March lows.

If the current rally is going to run out of steam anywhere then this is as good a place as any, but so far the buyers still have the upper hand.

US indices are in similar positions so the next couple of day’s performance should play a big part in market sentiment for the rest of the summer.

If we see the FTSE 100 decisively break through the 4500 mark it sets up the year’s highs at 4700 as the next target.

Looking ahead to the US open, at the moment we are expecting little change for the Dow Jones Index at the moment.

Spread betting carries a high level of risk to your capital. You may lose more than your initial investment. It may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.

Good Luck!

DB

The above comments do not constitute investment advice Clean Financial accepts no responsibility for any use that may be made of them.

Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.

Financial Market Comments from David Jones, Chief Market Strategist, IG Index.

In mid-morning trading, it has been a strong start to the week, with the FTSE 100 up by around 60 points so far.

UK stocks continue their rally from the two-month low seen a week ago and have got back to levels last seen in mid-June.

Once again it is the miners and financials dictating the direction of the market – Lloyds Banking Group is the top gainer ahead of results later this week.

There has been something of a resurgence of interest by traders in the banks after a quiet couple of months and market reaction to these Lloyds figures could well set the tone for the direction of UK shares for the next couple of weeks.

Today’s strength sees the FTSE well above the 4400 mark and approaching an area that has been a real problem since early May.

Successive rallies to the 4500 zone ran out of steam on four separate occasions recently – so the next couple of days will be a real test for the latest spurt in positive sentiment.

Many traders would see a decisive break through 4500 as the sign of renewed optimism for stock markets, after a nervous few weeks, and would leave them targeting the year’s highs at 4700 next.

Ahead of the US open, we are expecting the Dow Jones to open up around 50 points higher than Friday’s close.

Spread betting carries a high level of risk to your capital. You may lose more than your initial investment. It may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.

Good Luck!

DB

The above comments do not constitute investment advice Clean Financial accepts no responsibility for any use that may be made of them.

Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.

Financial Market Comments from Philip Gillet, Sales Trader, IG Index.

Coming up to mid-morning, the FTSE 100 is up about 30 points at 4390 and is trading in the 4380 – 4400 range.

Banks, oils and the miners lead the way, while the main losing sector appears to be Telecoms, as Cable and Wireless announce results amid expectations of a fiery AGM as shareholders are expected to revolt against a controversial bonus deal for directors.

Again, we are seeing light trading volumes and focus today will yet again be on US banking, with Bank of America, Citigroup and Morgan Stanley announcing results.

The US earnings season are driving what is otherwise a lifeless market.

With the FTSE reaching dizzying heights at breakneck speed, a correction looks a fair assumption – but with the new improved sentiment, and likelihood that that the results out this afternoon will be good, this correction may well not be today.

Improved corporate profits are being well received, but they mask the fact that increased profits have been at a cost – many unemployed bankers will be happy to tell you that.

Spread betting carries a high level of risk to your capital. You may lose more than your initial investment. It may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.

Good Luck!

DB

The above comments do not constitute investment advice Clean Financial accepts no responsibility for any use that may be made of them.

Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.

Financial Market Comments from Philip Gillet, Sales Trader, IG Index.

In mid-morning trading, the FTSE 100 is slightly down on the day.

Bank and Oil sectors are up but are counterbalanced by a drop in the miners. Currently we are in a data driven market and with the lack of figures out in the UK today trading is light.

It was a fantastic start for to the week for equity markets: on close of business Friday, the FTSE 100 looked like it was going to continue its downward trend that had been taking shape since the start of the month, and was starting to test the 4000 level.

However we are now up nearly 240 points from this months low, a rise of 6%. The market has suddenly seen more positive signals as we enter the US earnings season.

So far results are better-than-expected and the results of Goldman Sachs exceeded all expectations. Last night, spurred on by improved industrial production data, the Dow Jones gained 3%.

We have some more big guns reporting today in the US, with JP Morgan Chase at 1.30pm (BST) followed by IBM and Google.

It will be interesting to see if JP Morgan can follow the lead of Goldman Sachs’ results or whether Goldman Sachs are just a class above.

US housing data also out at 1.30pm is expected to show a slight decline from the previous month, but any indications of a turnaround could well lead to further positive market movements

Right now the market seems to have got over excited and is maybe ahead of itself, with minutes released from the FOMC indicating a belief that the economy is weak and vulnerable.

The US markets seem to have taken this sentiment to mean the continuation of low interest rates, ignoring the fact that the World’s largest economy is still viewed as fragile by its policy makers.

Spread betting carries a high level of risk to your capital. You may lose more than your initial investment. It may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.

Good Luck!

DB

The above comments do not constitute investment advice Clean Financial accepts no responsibility for any use that may be made of them.

Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.