US Shares Rise After Positive Goldmans Note on Crude Oil and Copper
UK Market Comment, 24 May 2011
Closing comments from Will Hedden, Sales Trader, IG Index:
The FTSE is showcasing its ‘bouncebackability’ skills this afternoon, but the upside remains capped by the Eurozone crisis.
US shares are digging their heels in around the flat line after opening to the upside. Goldman Sachs generated a few headlines by calling the bottom on oil and copper, and issuing a bullish note for the months to come.
It was just over a month ago that they advised clients to come out of their long ‘CCCP’ basket, having enjoyed a substantial return on the back of the rising oil price. Oil prices have firmed by 2% today, and Goldman said it expects strong demand growth.
This is an interesting development for the commodity markets, as notes from Wall Street's most famous investment bank are essential bedtime reading for many a wannabe market guru.
Back to London, and shares are holding on to this morning's gains and bouncing from yesterday's sell off thanks to oil and mining strength.
The European debt crisis is still very much the topic de jour. Sections of the market have already written off Greece and decided that they are better off defaulting and starting again, just as Iceland did.
European banks remain weak as there seems no end in sight. With this on the table the chance of a major downside move remains very real, and is currently undermining any strength offered by individual equities.
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Copper, where to find free charts, live pricing, how to trade etc >> Copper Spread Betting US Shares, where to find free charts, live pricing, how to trade etc >> US Shares 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.
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UK Market Comment, 23 May 2011
Closing comments from David Jones, Chief Market Strategist, IG Index:
Heading into the final hour of the trading day, FTSE 100 shares are still firmly in the red.
Many indices spread betting investors will no doubt be only too happy to see the back of today. The FTSE 100 has hit its worst levels in nearly two months as the market has been beaten up by plenty of bad news.
European sovereign debt is firmly back on the agenda with the Spanish election backlash over the weekend and S&P’s caution towards its Italy outlook just adding to the woes caused by Greece in recent weeks.
In addition, this morning’s preliminary Chinese PMI data showing a slide to a 10 month low has done nothing for confidence in the sustainability of the recovery.
Of course, it was just over a couple of months ago that shares in London saw a much steeper decline than this following the Japanese earthquake – and promptly bounced back.
However, what is clearly unnerving markets at the moment is just how unquantifiable the Eurozone crisis still is – with many of us thinking we had left the threat of contagion a few months back.
A quick resolution to these concerns seems unlikely and traders are bracing themselves for any rallies to be just too tempting for further sellers and the risk of further weakness in the days ahead.
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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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.
Article provided / approved by IG Index which is authorised and regulated by the Financial Services Authority (FSA), FSA Register number 114059.
'US Shares Rise After Positive Goldmans Note on Crude Oil and Copper' edited by AG, updated 24-May-11
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