UK Energy Firms Rise as US Crude Oil Regains $100 Mark
UK Market Comment, 8 June 2011
Closing comments from Will Hedden, Sales Trader, IG Index:
Heading into the close and London equities are still nursing losses, although the FTSE is now off earlier lows.
After a relatively brief foray below the 5800 line, territory last seen at the end of March, the FTSE has managed to claw its way higher.
This has been helped along by the fact Wall Street traders are holding their nerve, for now anyway.
Although the vast majority of the top flight stocks remain in the red, some of the biggest reversals have been seen in the energy sector.
The likes of BP and Shell have been been cheered by news that OPEC will hold tight on output and review the situation again in three months time.
The benchmark US crude oil price is back above $100/barrel, but no doubt there will be much wrangling to come among the producers over the next quarter.
Wall Street, however, is arguably still trying to decide which way to head as the US trading session gets underway.
Ben Bernanke’s comments last night haven’t really helped, although the absence of QE3 is understandably weighing on sentiment in general.
Many may want to sit tight until the release of the Fed’s Beige book later this evening. However, it seems unlikely that this will bring much that’s new to the table and more likely it will simply underline the strained nature of the US economic recovery.
Tomorrow we’ve got rate verdicts due from both the ECB and BoE and, with the exception of any surprise hikes, these are unlikely to offer any fresh direction and shake off the recent lethargic mood.
The above comments do not constitute investment advice and neither IG Index nor Clean Financial accept any responsibility for any use that may be made of them.
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UK Market Comment, 7 June 2011
Closing comments from Ben Critchley, Sales Trader, IG Index:
After a choppy session, European shares spread betting markets are sitting on modest gains as we approach the close.
There’s no escaping the worries over the outlook for the global economy, but, for the meantime at least, traders seem happy to try and pick up some bargains after the recent sell-off for equities.
The release of better-than-expected retail sales data out of Europe this morning certainly added a little to the theme of confidence.
However, it’s arguably going to be Bernanke’s missives late this evening that will provide the next line of meaningful direction.
The will-they-won’t-they debate over the Fed’s commitment to further quantitative easing is still lacking clarity, with recent comments from reserve officials having done little to help clear things up.
Looking beyond the speech from the Fed chief, traders will be eyeing a Eurozone GDP update tomorrow, along with an update from Punch Taverns, but otherwise it’s all looking rather quiet.
Any suggestion of QE3 from the Fed would likely give stocks another quick shot in the arm, but whether this would have any lasting effect in light of the outcome of the past two rounds remains to be seen.
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'UK Energy Firms Rise as US Crude Oil Regains $100 Mark' edited by AG, updated 08-Jun-11
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