Financial Market Comments from Yusuf Heusen, Senior Sales Trader, IG Index.

In mid-morning trading, shares in London have risen as investors have regained some of their confidence.

After a cautious couple of days, the buyers are back out again in the first few hours of trading in London.

A late rally on Wall Street on Thursday helped tee up the FTSE for a positive start and good news from BP is also providing momentum.

It looks like the company has stopped the flow of oil from the leak in the Gulf and this has given fresh impetus to the share price, helping to calm some concerns that this month’s 30%-plus rise was getting somewhat overdone.

After sliding back earlier this week, despite its number beating expectations, Burberry has found favour today and tops the blue chip leader board with a 3% gain.

The company has announced that it is buying the stores of its China franchisees and this, coupled with the recent Americas expansion, could help to reassure investors there is still more to come despite the fivefold rise in the share price over the past 18 months.

Looking ahead to the US open, at the moment we expect the Dow to start off down around 15 points.

With CPI and Michigan Sentiment data due out for release it should be an active end to the week and traders will be looking for a move through 10,400 to suggest there is still some momentum left after the recent strong run.

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Good Luck!

DB

The above comments do not constitute investment advice and Clean Financial accepts no responsibility for any use that may be made of them.

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