Posts from — September 2009

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

In mid-morning trading, the FTSE is up around 25 points – 0.5%.

The major announcement this morning was from Marks & Spencer, which posted better-than-expected sales and boosted profit margins.

However, the retailer was at the bottom of the FTSE – down 2.25% by 10.45 am (London time). It seems as though any investor optimism in the stock had been factored into the price and the news this morning served as an opportunity to take profits.

Despite the profit-taking, the upbeat news must serve as further confirmation that the tide is turning and that dark clouds of recession may be beginning to break apart. Nevertheless, M&S did warn that there were still tough times ahead.

In the three months to September investors have watched the FTSE rally 21.4% – the best quarterly performance since the index opened in 1984.

However, this kind of statistic inevitably has a double-edged effect; the rally has undoubtedly been impressive, but is it sustainable over another quarter?

Perhaps because of this sort of question, there is a note of caution lingering over the UK index today as traders take stock before a new month begins.

This afternoon will see the release of final GDP data for the US which may set the tone for trading in London.

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 Gillett, Sales Trader, IG Index.

In mid-morning trading there has been a softer start to UK stocks.

We are seeing some slight losses on the day so far for the FTSE 100 although the latest GDP revision has brought about an air of stability to London shares.

GDP for the second quarter has been revised to show a drop of 0.6% rather than the previous 0.7% reported and this release has managed to stem the initial sell-off.

Although markets have lacked direction over the past week, there is still a healthy appetite among traders for picking up bargains on the dips.

The latest leg of the recovery that started in July has notably slackened during this month but overall markets still look set to push out to fresh highs for the year, albeit at a more gradual pace than we have been used to recently.

Looking ahead to the US open, at the moment we are expecting little for the Dow Jones index when trading starts this afternoon but with the Case Shiller housing and also the consumer confidence figures due out it could set up a volatile finish to trading in London.

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.

It’s been a choppy start to the new trading week for the London index, with the FTSE failing to find lasting support around the 5050 level.

Although the news from Wall Street at the end of last week was far from upbeat, the weaker Pound and some positive earnings news seems to have at least slowed the decline in London.

Wolseley has been the big stand-out today with shares rallying over 8% with a £766m loss being outweighed by an aggressive restructuring plan and the fact the losses weren’t quite as bad as expected.

The banks are also back in focus and both Lloyds Banking Group and RBS are under pressure as concerns over possible rights issues weigh, leaving the sector as a whole in the red.

With limited economic data due for release from either side of the Atlantic today a meaningful direction may be difficult to come by.

More news of the Kraft bid for Cadbury is expected, helped along by the weaker Pound whilst the imminent month-end could also initiate a degree of window dressing, but perhaps the fact we’ve already retreated from recent highs could ensure that any profit taking ends up being relatively modest.

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.

As the week draws to a close, the FTSE is struggling to lock in early gains and stay above that 5100 level.

It’s been a relatively quiet start to the session and with limited economic and corporate data due for release, attention has been largely focused on the forthcoming G20 meeting.

Specifically, any proposal to tighten banking regulation on a global basis could send repercussions through the financial sector, although on a more positive note, the petrochemicals sector is lending support despite the recent decline in crude oil prices as demand concerns weigh.

As the session progresses, attention will, without doubt, turn to the US where durable goods order data will offer an update as to the health of the country’s economy.

After yesterday’s big declines on Wall Street, the futures are pointing towards a stronger open, with the DOW tipped to start above 9700, but anything that gives traders cause for concern – and an unexpected decline in durable goods would do precisely this – could easily act as the trigger to take more money off the table ahead of the weekend break.

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 in London, the FTSE 100 is down around 42 points to 5096.48.

Today’s drop on the FTSE is a clear sign of profit-taking among short-term investors and a stark reminder that sunny optimism can last for only so long without faltering, especially in the midst of a global downturn.

The UK’s blue-chip index has gained around 21.5% so far this quarter, with many expecting the FTSE to post its best quarterly percentage gain since its launch in 1984.

This morning though, the LSE took points off the FTSE, slipping 5% to 835p. Other poor performers included British Airways, 3i, Thomas Group and house builder Wolseley, all down between 2.95% and 3.78%.

Eurasian, Segro, Old Mutual, BSkyB and GlaxoSmithKline managed to defy the trend, rising between 0.58% and 1.98%.

Yesterday, the Fed announced no change in US interest rates, saying it would continue to free up the credit market with its quantitative easing programme, as planned.

The FOMC also said that economic activity is finally improving in the US – possibly indicating that the country may finally be taking its first solid steps toward a recovery.

For now though, US investors remain cautious, and today’s housing market data may influence the flow of sentiment when Wall Street opens 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.