UK Equities Trading Update
Financial Market Comments from David Jones, Chief Market Strategist, IG Index.
In mid-morning trading, the FTSE is up around 25 points – 0.5%.
The major announcement this morning was from Marks & Spencer, which posted better-than-expected sales and boosted profit margins.
However, the retailer was at the bottom of the FTSE – down 2.25% by 10.45 am (London time). It seems as though any investor optimism in the stock had been factored into the price and the news this morning served as an opportunity to take profits.
Despite the profit-taking, the upbeat news must serve as further confirmation that the tide is turning and that dark clouds of recession may be beginning to break apart. Nevertheless, M&S did warn that there were still tough times ahead.
In the three months to September investors have watched the FTSE rally 21.4% – the best quarterly performance since the index opened in 1984.
However, this kind of statistic inevitably has a double-edged effect; the rally has undoubtedly been impressive, but is it sustainable over another quarter?
Perhaps because of this sort of question, there is a note of caution lingering over the UK index today as traders take stock before a new month begins.
This afternoon will see the release of final GDP data for the US which may set the tone for trading in London.
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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.
Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.
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