Mergers Talk Helps FTSE spread Betting Markets Shake Off Weak Start
Financial Market Comments from Anthony Grech, Head of Research, IG Index.
In mid-morning trading, shares in London have shaken off some early weakness to start the week slightly higher.
All eyes were on BP first thing, following the weekend news of seepage from its latest attempt to cap the Gulf leak and rumours that talks to dispose of some of its Alaskan interests were hitting some obstacles.
However, after a sharp opening sell off, the oil company has managed to regain a significant portion of earlier losses, helping to soothe investor sentiment.
M&A talk is also helping to keep things interesting with Tomkins announcing an approach and International Power topping the blue-chips following discussions with French company GDF Suez.
It is a quiet day on the economic calendar today so we may end up less volatility than of late.
Earnings season in the USA continues and today’s main event for traders is IBM’s latest set of numbers which are not due out until after the US markets close. Expectations are for earnings of around $2.50 a share for the last quarter.
After taking a battering for much of Friday’s session, there are signs of stability returning to the US indices ahead of the open after the positive start in Europe.
At the moment we are expecting the Dow Jones to start off around 55 points higher when trading on Wall Street resumes.
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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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