UK Financial Markets Trading Update
Financial Market Comments from Anthony Grech, Market Strategist, IG Index.
It’s been a choppy start to the new trading week for the London index, with the FTSE failing to find lasting support around the 5050 level.
Although the news from Wall Street at the end of last week was far from upbeat, the weaker Pound and some positive earnings news seems to have at least slowed the decline in London.
Wolseley has been the big stand-out today with shares rallying over 8% with a £766m loss being outweighed by an aggressive restructuring plan and the fact the losses weren’t quite as bad as expected.
The banks are also back in focus and both Lloyds Banking Group and RBS are under pressure as concerns over possible rights issues weigh, leaving the sector as a whole in the red.
With limited economic data due for release from either side of the Atlantic today a meaningful direction may be difficult to come by.
More news of the Kraft bid for Cadbury is expected, helped along by the weaker Pound whilst the imminent month-end could also initiate a degree of window dressing, but perhaps the fact we’ve already retreated from recent highs could ensure that any profit taking ends up being relatively modest.
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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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