Posts from — August 2009

Financial Market Comments from Anthony Grech, Market Strategist, IG Index.

The FTSE sprang back into positive territory this morning, ending a two-day losing streak and breezing past the 4900 mark as miners staged a comeback and better-than-expected economic data boosted sentiment.

At 10am (London time) the FTSE 100 leader board was dominated by miners, with Kazakhmys notching up an impressive 6.19% increase after reporting better-than-expected first-half earnings results on Thursday.

Bullish analyst forecasts also boosted the performance of the metals sector in the UK this morning, with Eurasian, Xstrata and Lonmin rising between 4.24% and 4.70% shortly after 10am.

Investors have obviously taken cue from the recent improvements in economic data, bringing the blue-chip index another significant step closer to the 5000 level.

Investors will be eying today’s reaction to the UK GDP revision with interest. On the one hand any improvement in such a crucial figure is an important boost to sentiment, but on the other there’s no getting away from the fact that the annual drop of 5.5% is still the most severe decline since records began.

The UK has also – as of yet – failed to join France and Germany in breaking out of the recessionary trend, potentially making European equity markets a more attractive investment than the FTSE.

Having said that, there still seems to be plenty in the tank for the UK index, and the 5000 mark is becoming a less and less daunting psychological barrier with every leap forwards.

Ben Bernanke’s claims that the recession would be over soon have echoed in market rallies around the world. Investors will be wondering exactly how far this sentiment can travel, and whether the wave will be broken by conflicting news, profit taking or a double dip.

The coming weeks may mark the chairman’s comments as either heralding the start of a long rally or being a false start in the global economy.

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.

Spread Betting Comments from Arifa Sheikh-Usmani, Equity Trader, Spreadex.

A slightly downbeat start to the FTSE this morning as WPP gives the Markets a reality check as to the pace and longevity of any potential recovery.

Durable goods figures and Home Sales out in the US later today may provide a bit of stimulus and direction for markets that are still suffering from thin volumes.

Spread betting carries a high level of risk to your capital and can result in losses larger than your initial deposit/stake. It may not be suitable for everyone, so please ensure you fully understand the risks involved.

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 Spreadex which is authorised and regulated by the Financial Services Authority. FSA Register number 190941.

Financial Market Comments from Anthony Grech, Market Strategist, IG Index.

At mid-morning the FTSE has recovered some of the opening losses and seems to be plotting a course for a return to the black.

Without doubt there’s been a degree of consolidation taking place in the last few hours as traders regroup ahead of a possible test on the key 5,000 level for the FTSE, while falling commodity prices are adding to the downside with heavyweight mining and oil stocks retreating as a result too.

However, we have seen some solid earnings news so far with insurers Admiral posting bumper profits while Persimmon sounded an optimistic note over the housing sector too, adding weight to the argument that equity traders could be positioning themselves for another push higher.

Tomorrow’s numbers from Antofagasta will make for interesting reading as you can never understate the heavyweight mining sector’s ability to shift the FTSE 100.

This morning’s news that bank lending remains sluggish is doing little to stoke demand and many will be looking toward Friday’s updated GDP figures to provide evidence of more green shoots.

There’s also some key data due from across the Atlantic in the coming days – August consumer confidence figures today and durable goods orders tomorrow; although, again the expectation here is for demand to remain sluggish.

Regardless, Wall Street is currently eyeing a slightly stronger start to the day after yesterday’s essentially flat session and any bullish notes from New York will doubtless end up resounding in London too.

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 Anthony Grech, Market Strategist, IG Index.

The FTSE continued moving in positive territory in mid-morning trading, up 0.68% to 4883.8 by 10:45am (London time), having earlier breached the 4900 level.

After US stocks closed positively at the end of Friday trading, and Asian markets mirrored this sentiment in early Monday trading, the FTSE looks to be vying for a fifth day of gains.

Commodity and financial stocks both lead the index higher. In the wake of higher commodity prices Kazakhmys was up 5.2% at 975p; followed closely by Rio Tinto, up 3.9% at 2491p, and Eurasian, up 3.2% at 879p.

Lloyds was the leading FTSE constituent, up 6.3% to 107.9p following reports that Resolution may bid for its Clerical Medical branch. RBS mirrored these gains and tracked upwards to 51.1p (5.4%).

WPP performed well, up 5.05% at 530p, with positive reviews from Deutsche Bank and RBS ahead of their midweek interim results; better-than-expected interim results also boosted Bunzl, gaining 20p to 572p.

The largest fall came from the security-services provider G4S. Shares in G4S fell 4.3% to 214.4p, after their pre-tax profits failed to meet expectations.

With just a few exceptions, we’ve seen a wave of good sentiment flooding the markets since the US Federal Reserve chairman’s upbeat comments built in a positive move in US home sales.

Ben Bernanke’s claims that the recession would be over soon have echoed in market rallies around the world. Investors will be wondering exactly how far this sentiment can travel, and whether the wave will be broken by conflicting news, profit taking or a double dip.

The coming weeks may mark the chairman’s comments as either heralding the start of a long rally or being a false start in the global economy.

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 Anthony Grech, Market Strategist, IG Index.

At mid-morning the FTSE has again shown its resilience and is currently performing strongly.

After an early dip first thing this morning, UK shares look to have regained some momentum and at 10.30am (London time) the FTSE is up by 25.44 points.

Among those making gains today are the oil majors, including BP, Shell and Tullow Oil; crude prices are hovering around $73 a barrel on indications that global demand is improving.

Continuing the commodity theme, yet again miners were hard to ignore, but enjoying mixed fortunes with Rio Tinto down almost 1% and Fresnillo up 0.75% after an hour of trading. WPP Group shares were among the main fallers, after the strong gains seen yesterday it looked like speculators were having a quick flutter before the advertising giant announces its results next week.

It has become apparent again this morning just how much investors are looking to Asian, especially Chinese, markets for direction at the moment. No-one can ignore the fact that China pretty much stands alone in the world when it comes to posting consistent, healthy and stimulus-free economic growth figures.

When these figures don’t come in as expected then it’s small wonder that the world’s markets react in the way they do. But it’s also worth noting just how resilient the major indices have been.

While the FTSE looks like it’s on track to make a reasonable weekly gain, it will be interesting to see how the Dow Jones reacts to the negative sentiment caused by the surprise jobless claims figures yesterday. Otherwise, with volumes low and no significant economic or corporate figures due, expect a relatively quiet one today.

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.