Posts from — September 2009

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

In mid-morning trading UK stocks are under some pressure but the FTSE remains above 5000.

It is shaping up to be another quiet day, with little significant movement for blue chip stocks in London.

The monthly inflation release has been the main event so far in the UK. This fell, but was less of a drop than the market was expecting, with CPI coming in at 1.6%.

It could be the US market that adds some volatility today, with PPI and Retail Sales data out ahead of the official open.

At the moment we are expecting a slightly softer open for US shares, with the overnight market pointing to the Dow Jones Industrials starting off 25 points lower.

Although stock markets have quietened down over the past few days, this doesn’t necessarily signal a shift in sentiment so far, with buyers happy to step up to the plate on the odd bout of weakness.

Only if the FTSE were to drop below 4900 would it start to look as though the latest run of strength had hit the buffers. So for now more upside progress, albeit gradual, is expected.

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.

In mid-morning trading we are seeing a weaker start for UK shares.

The FTSE 100 is back below the 5000 mark as shares start the week a little softer. There is little news flow of any note driving trading this morning, short-term weakness in commodities is hitting the mining sector with losses of around 3% across the board here weighing on the index.

Today’s weakness still looks, according to some traders, like a short-term blip in the strength we have been enjoying for the past few months.

The index has been knocked back to the lows from last Thursday and there are early signs of renewed buying interest at these levels.

The next immediate big level on the downside is 4900 and only if the index were to slip through here does it start to look like we could be in for a more sizeable slide.

For now it would not be a surprise to see the 5000 mark regained as the week goes on.

Looking ahead to the US open, at the moment we are expecting the Dow Jones to open down around 80 points lower this afternoon.

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.

Mid-morning, the London index remains positive but is so far failing to make any attempt on yesterday’s highs.

The FTSE 100 has broken back above the key 5000 level with notable support being seen amongst the heavyweight mining stocks as ongoing Dollar weakness continues to bode well for precious metals prices.

However, the upside for UK equities could be limited by the bigger than expected increase in PPI – this carries with it a warning of inflationary pressures to come and, in the light of yesterday’s tame MPC verdict, many traders will be starting to think about the inevitable prospect of higher interest rates.

Whether the 5000 level can hold through to the weekend remains to be seen, however, current indications are that the major US indices are going to see a modest reversion on opening.

Any additional downside pressure could spill over into Europe and with both the wholesale inventories and University of Michigan confidence figures slated for release, any shortfall here could extend the desire to book profits on what has been a healthy week of gains.

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.

The FTSE has traded past 5,000 for the first time since October 3rd, 2008 as investors continue to extend the recent rally. Positive news from BG Group this morning, broker upgrades and bullish UK consumer confidence are all adding to the feel good factor.

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.

At mid-morning in London there is not much change to the FTSE 100 index.

It is a quiet start so far for UK shares, the recent bullish mood taking a breather after the weaknesses seen in Asian markets overnight.

Data today from the Nationwide has shown consumer confidence is at its best level since May 2008, but this is having a negligible affect on market sentiment so far today.

The best blue-chip performer so far is British Airways, up by around 2.5%. This seems to be on the back of consolidation rumours within the sector, particularly relating to the speculation surrounding the future of BMI.

Looking ahead to the US open, at the moment we are expecting the Dow Jones Industrials to start off a bit softer than last night’s close – but only by around 15 points.

With little on the economic calendar for the rest of the day, today could continue the early trend of little progress in either direction for markets – which would not be too surprising considering the strong gains seen recently.

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.