FTSE 100 Makes Gains on Mining Strength and a Late US Rally: Index Spreads Update
Financial Market Comments from Tim Hughes, Head of Sales Trading, IG Index.
In mid-morning trading the FTSE 100 has got off to a positive start, with mining stocks leading the way.
Randgold Resources is top of the leader board so far this morning, with impressive gains of 7% on the back of its fourth-quarter profits.
Xstrata’s numbers were also well received and, with both companies offering an optimistic outlook, this has lifted the rest of the sector with a corresponding knock-on effect on the FTSE 100 index.
This pushed the FTSE back towards the 5100 level earlier on, offering some cheer for traders so far.
However, it is fair to say there is still an air of nervousness surrounding sentiment at the start of the week.
Today’s start would have been an awful lot uglier if it wasn’t for the impressive turnaround US stocks made in the second half of the last US session. In fact the Dow Jones clawed back around 150 points of losses.
The positive start today is a step in the right direction, but it is going to take at least a few days of gains for traders to start believing the latest leg of the slide is over.
At the moment we are expecting a slightly weaker start to trading in the US today with the Dow currently trading around 15 points lower than Friday’s close.
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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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