Spread Betting and Morrison Helps Lift the FTSE 100
Financial Market Comments from David Jones, Chief Market Strategist, IG Index.
In early trading, the FTSE is around 20 points higher, with retailers in focus.
A trading statement from supermarkets business Morrison has propelled the food retailer to the top of the leaderboard this morning, up around 8%.
The company has said that a solid start to the year has continued into the second quarter and it expects full year results to be ahead of expectations.
The strong open by the shares has shaken off a decidedly lacklustre few months of performance, and puts the price back to levels last seen in February.
There are also some early signs that traders are happy to bank windfall profits at these levels, and wait to see if the FTSE manages to break the 4500 barrier, before considering any more significant upside for Morrison.
Last night’s gains in the US have ensured another solid start to trading this morning in the UK.
The FTSE 100 is now within 50 points of the best levels achieved in the bounce back from the March lows.
If the current rally is going to run out of steam anywhere then this is as good a place as any, but so far the buyers still have the upper hand.
US indices are in similar positions so the next couple of day’s performance should play a big part in market sentiment for the rest of the summer.
If we see the FTSE 100 decisively break through the 4500 mark it sets up the year’s highs at 4700 as the next target.
Looking ahead to the US open, at the moment we are expecting little change for the Dow Jones Index at the moment.
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.
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