Closing comments from Yusuf Heusen, Senior Sales Trader, IG Index:
Heading into the close it has been another solid performance by the FTSE, with the index pushing out to five week highs.
Once again shares in London have shown consistent strength for much of the day, pushing the FTSE up to within a few points of the two-year-plus high set in November.
There was a short-lived wobble earlier this morning as UK inflation figures came in slightly higher than expected. However, once again we have seen investors’ ongoing appetite for risk ably shrug off negative news and continue buying shares.
Oil giant BP was the strongest gainer on news that the company has sold off some oil fields in Pakistan.
This has pushed the share price clear of its two-month range, leading to speculation that this could be the start of another leg in its recovery following the plunge earlier this year.
US markets also kept momentum going in the afternoon, with November retail sales rising more than forecast. This has pushed the Dow out to another fresh two-year-plus high and left traders cautiously eyeing up the 12,000 mark as the next major target.
Although volumes are continuing to thin out ahead of the Christmas break, it is clear that investors still seem happy to buy into both weakness and strength at the moment. Any sell-offs are proving to be very short lived for now, lining equity markets up for a strong finish to the year.
How and where to spread bet on:
BP, where to find free charts, live pricing, how to trade etc >> BP Spread Betting FTSE, where to find free charts, live pricing, how to trade etc >> FTSE Spread Betting
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UK Market Comment, 13 December 2010
Closing comments from Ben Critchley, Sales Trader, IG Index:
Heading into the close, it has been a solid performance for UK blue chips as strong commodity prices have lifted the miners.
You would normally expect stronger-than-forecasted inflation data out of China to inject a note of caution into UK mining stocks as investors wait to see what the response will be on interest rates – but this has not been the case today.
Concerns about a Chinese rate rise have been mitigated by the price of copper moving out to record highs, this has had a knock-on effect for the mining sector with some solid gains across the board. Add into the mix an element of exaggeration due to the thinning of volumes and it has all meant a good start to the week for the FTSE.
All of this has been helped along by the US indices moving out to fresh-multi-year highs, demonstrating an ongoing healthy appetite for risk amongst equity investors.
Indices have ridden some shocks lately with the Irish crisis and worse-than-expected US unemployment numbers. However the strong bounce back in recent weeks continues to demonstrate how resilient shares are at the moment and we may well end up seeing fresh highs above 5900 for the FTSE before the year is out.
How and where to spread bet on:
FTSE, where to find free charts, live pricing, how to trade etc >> FTSE Spread Betting Indices, where to find free charts, live pricing, how to trade etc >> Indices Spread Betting
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.
IG Index >>
"With IG Index you get all the normal advantages of Spread Betting plus..." >> read
IG Index review.
Risk Warning: Financial Spread Trading and CFDs carry a high level of risk to your capital. You may lose more than your initial investment. They 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.
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'BP Rallies as it Sells Oilfields' edited by AG, updated 14-Dec-10
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