Posts from — October 2009

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

In mid-morning trading, shares in London have shrugged off the surprise GDP figure to continue higher.

UK shares were set to get a strong lift right from the start following another good performance on Wall Street yesterday.

After the initial push higher, traders marked time ahead of the much-awaited third-quarter GDP figures.

To everyone’s surprise this showed further contraction for the UK economy – but only caused the briefest of wobbles for the FTSE 100; since then the market has moved out to fresh highs for the day.

With today’s GDP number suggesting that interest rates may well be remaining on the floor for some time, investors still seem happy to see shares as the preferred home for their cash, and this is continuing to fuel the rally.

Looking ahead to the US open, at the moment we are expecting the Dow Jones index to start off broadly unchanged from last night’s finish.

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 been in freefall this morning, currently trading 1.62% down at 5172.44.

London’s blue-chip index fell back below 5200 after disappointing after-hours US earnings news and uninspiring economic data from China.

Overnight weakness on Wall Street, coupled with speculation that China could curb its stimulus spending, played heavily on UK stocks, with mining companies leading the retreat.

Fresnillo, Lonmin, Xstrata and Antofagasta were all down on the morning. A late sell-off in financial stocks in the US also led UK banks to feel the pinch.

Earnings season is well under way in the US, and with giants such as McDonald’s, AT&T and Amazon due to report today, expect Wall Street to continue to give direction to the market.

Traders are still on the look-out for the anticipated market correction, but a seven-month rally dating back to March means a lot of momentum for the FTSE, and the index will be looking to get back to winning ways before the week is out.

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 100 is currently trading lower on the day, down 0.55% at 5214.69.

The UK’s leading index is experiencing a slight hang over from yesterday’s trading in Wall Street, as the US markets delivered a cocktail of poor housing data and profit taking.

Grocer’s Tesco and Sainsbury’s were among the early gainers. Tesco benefitted from Nomura Holdings Inc. increasing its price estimate on the grocer’s shares, pointing to the prospect of increased profitability and foreign sales.

And Sainsburys’s share price gained following reports that Qatar Holding could raise its stake in Sainsburys. Currently Tesco has rallied 1.94% (7.45p), with Sainsbury’s up 0.58% (2.00p).

While there is still positive momentum in the markets, news out of the US yesterday will be raising some alarm bells.

Investors engaged in profit taking following the release of poor US housing data, leaving the Dow Jones to close lower on the day.

Analysts are predicting that the UK’s October CBI industrial trends survey, due out shortly, will indicate that recovery in the manufacturing sector is faltering.

It seems that while we may be heading out of a recession, the pace of recovery may be sluggish at best, and we could well see more profit-taking on the horizon.

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.

In mid-morning trading UK shares are a little weaker.

Shares in London have dipped back in early trading with Barclays one of the biggest fallers. This was on news that Qatar Holding is selling 379 million shares.

At the other end of the scale, Sainsburys is the biggest gainer on the day as speculation continues that Qatar increasing the stake here is the catalyst for the Barclays sale.

Although the FTSE 100 is down for the day so far, it did briefly move out to fresh twelve month highs, reaching 5298.

There still seems to be a healthy attitude among investors for buying into shares regardless of whether they are strengthening or weakening short-term.

At the moment there seems little reason to worry about a sharp slide for the stock market and many are looking for the FTSE 100 index to move through the 5300 level in the next couple of days.

Looking ahead to the US, at the moment we are expecting the Dow Jones to start off broadly unchanged from last night’s close.

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 Analyst, IG Index.

The FTSE has started the week in an upbeat mood, adding over 50 points as we approach the mid-point of the day.

Miners have been among some of the biggest gainers so far, with the sector adding almost 2.5% as precious metals prices remain in favour.

There has certainly been a slight shift in risk profiles over the weekend, typified by factors such as GBP/USD retreating a little from recent highs, adding further fuel to the likes of silver and gold.

With little on the economic calendar today, attention is going to once again switch to the ongoing Q3 earnings season in the US to see if this latest rally can be sustained.

There has certainly been no shortage of worry that expectations here may have been a little overdone and as a result, risks do remain stacked on the downside.

Both Apple and Texas Instruments are among the higher profile names due to report today, although news here will have to wait until well into the evening with both due after the closing bell.

The Dow Jones is forecast to open back above that key 10,000 level (up 27 at 10,023) so, assuming this can hold, equities on both sides of the Atlantic may well find further support in the short term.

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.