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.
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