UK Shares Spread Betting: Tesco Tumbles 15% on Profit Warning
UK Market Comment, 12 January 2012
Closing comments from David Jones, Chief Market Strategist, IG Index:
Heading into the close, the FTSE 100 looks set to finish slightly down on the day.
There has been plenty of both domestic and international news flow to keep investors on the ball today, but it looks set to result in an uneventful finish.
Disappointing numbers and an effective profit warning from Tesco has resulted in an abundance of navel-gazing as to whether this is the end of the growth story for the nation’s omnipresent grocer.
A 15% slide in the share price is a rare event and does feel as if the reaction has been arguably overdone. However, with Tesco still on the slide into the close, any bargain hunters are clearly still sitting on their hands for now.
Successful Italian and Spanish bond auctions lifted the mood and the banking sector, with a reduction in jobs at RBS also leading some to reassess its valuation.
The RBS share price has been near the top of the leaderboard today, although admittedly it is coming off a very low base.
However, after being out of favour for the past 18 months, maybe this year is the one where shares in the UK banking sector wins back some supporters as concerns regarding European exposure continue to abate.
How and where to spread bet on:
RBS, where to find free charts, live pricing, how to trade etc >> RBS Spread Betting Tesco, where to find free charts, live pricing, how to trade etc >> Tesco 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, 11 January 2012
Closing comments from Will Hedden, Sales Trader, IG Index:
In a somewhat underwhelming day of trading, the FTSE 100 looks set to close down around 0.6%.
After a fairly calm morning, selling pressure has begun to form at the top of the trading range.
Energy stocks, having enjoyed yesterday, are lower on the back of falling oil prices and some surprising good news for UK households, as EDF Energy are to cut gas prices by 5%.
Centrica (-1.5%), owners of the British Gas brand responsible for many a morning hot shower and cup of tea, may be forced to move their prices to avoid losing clients.
We have also had a pull-back in US trading today after the S&P 500 reached a key level last night, closing at its best level since October.
With important Eurozone bond auctions tomorrow from Spain and Italy, it is unsurprising to see markets inch around nervously, without the serious volatility that we had become used to in the second half of 2012.
French downgrade rumours have reared up again, this time the talk is of S&P or Moody’s moving to cut them from AAA in the next 24 hours.
We have seen this rumour before, and hence the market reaction has been tepid to say the least.
If this were to happen, we might get the shock that bears believe would come on the back of such an overbought market on such weak fundamentals.
Otherwise, we could expect markets to trickle up into next week amid further earnings focus from the UK and US.
How and where to spread bet on:
Centrica, where to find free charts, live pricing, how to trade etc >> Centrica Spread Betting S&P 500, where to find free charts, live pricing, how to trade etc >> S&P 500 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.
Article provided / approved by IG Index which is authorised and regulated by the Financial Services Authority (FSA), FSA Register number 114059.
'UK Shares Spread Betting: Tesco Tumbles 15% on Profit Warning' edited by AG, updated 12-Jan-12
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Risk Warning:
Please note that spread betting and CFD trading carry a high level of risk to your capital. You can lose more than your initial deposit. These products 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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