BT Group up 5% on Investment Bank Upgrade
Financial Market Comments from David Jones, Chief Market Strategist, IG Index.
In early morning trading in London, it is another quiet day for UK shares so far.
It has been confirmed that Blackrock are buying the investment division of Barclays bank, with Barclays holding on to a 20% stake in business.
This news comes as no surprise to the markets and the weakness today for the Barclays share price seems a case of “buy the rumour, sell the fact”.
Barclays shares had rallied by almost 20% over the past week or so and, for now, the 300p mark still seems to be something of a psychological barrier to any more progress.
Telecoms business BT Group is the biggest gainer in blue chips so far, up by around 5% on the back of an investment bank’s upgrade.
The initial momentum from this morning’s open still seems strong and the next big level technical traders are eyeing is the 100p mark – this has successfully stopped any strength over the past couple of months, so it would not be surprising to see some of the bullishness fade as the day goes on.
Looking ahead to the US, we are expecting the Dow Jones index to open slightly down, around 10 points below last night’s close. As with UK markets at the moment, there seems a lack of conviction in any direction for US stocks.
Yesterday saw the US index push out to its best levels since early January, but this strength faded and most of these gains were given back very quickly.
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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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