Banking Sector Equity Trading Update
Financial Market Comments from Tim Hughes, Head of Sales Trading, IG Index.
In mid-morning trading, UK indices are showing clear signs of pressure, with the financial sector once again mired in controversy.
The Bulls appear to have let the Bears take centre-stage again today, with RBS and Lloyds down 6.72% and 5.53% respectively just after 10am.
This is due to investors’ concern that the two part-government-controlled banks may be forced to sell assets in return for the state aid they have received; which obviously spells bad news for the sector.
Barclays, which shirked aid money, has also been caught up in the storm, unfortunately falling 3.8% at 339.2p today.
Europe’s second-largest oil company BP has managed to buck the negative sentiment, on the other hand, rising 4.51% after posting better-than-expected third-quarter results.
The company has also raised its cost-cutting target for the year, causing shares to surge to a 16-month high.
US investors, meanwhile, are being kept very busy, as nearly 1000 companies announce their results this week.
For today, though, sentiment in Wall Street might take a turn for the better if the S&P Case-Shiller house price index and consumer confidence figures throw up positive results.
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.
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October 27, 2009 No Comments