Spread Betting 26 Aug 2010
|
|
|
For today's update see Spread Betting.
The Daily Update from Anthony Grech, Research Analyst, IG Index.
Spread Betting 26 August 2010: 11.00am Update
Upbeat results and rising commodity prices lay behind an advance in the FTSE 100 this morning, while a return to a more positive mood regarding the global economic recovery also pushed banking stocks higher in morning trading.
Good results from miners helped to lead the FTSE 100 higher, with rising commodity prices also aiding the index's rise. Copper miner Kazakhmys gained 2.89% to 1104p as it reported a 160% jump in earnings per share to $1.30.
Along with strong output in its silver and zinc divisions, the firm produced the equivalent of 164 kilotonnes of copper. Kazakhmys added that it remained positive on the outlook for copper.
Copper prices rebounded in morning trading after a difficult week due to poor US housing sales, gaining 1.32% to reach $3.2535. Evolution Securities became more positive on the outlook for Kazakhmys, increasing its target price from 1185p to 1295p and repeating its 'add' stance on the stock.
Fellow miner Xstrata rose 1.96% to 995.2p after major shareholder Glencore, the Swiss mining and commodities trading firm, reported strong results for the first half thanks to strong metal prices.
Engineering and consultancy firm AMEC gained as it reported a 28% leap in pre-tax profit to £113.5 million. AMEC lifted its half-year dividend by 20% to 7.3p and said that its order book had strengthened further and now stood at £3.5 billion. 'Customer spending in most areas is returning', the firm said, 'as evidenced by the growth in the order book and project pipeline'.
Drinks giant Diageo dropped 1.49% to 1050.15p as it fell short of expectations for pre-tax profit for the year to 30 June. Pre-tax profit was £2239 million, ahead of the previous year's £1990 million, but below analyst forecasts of £2344.7 million.
Volume in North America was 2% lower, although the firm's international division reported a 25% increase in operating profit. Diageo remained optimistic on the outlook for 2011, expecting the 'global diversity of [its] business' to allow it to improve on operating profit figures.
The banking sector was also strong this morning as optimism surrounding the global economic recovery returned. Barclays rose 2.47% to 305.35 and RBS gained 2.02% to 43.86p even as it announced the loss of 640 jobs at its Direct Line insurance offices in Glasgow.
At 10.30am (London time), the FTSE 100 was 29.32 points (0.57%) higher at 5138.72 and the FTSE 250 had gained 38.86 points (0.4%) to 9662.42. European markets moved higher as well, recovering from losses earlier in the week, with the DAX rising 17.2 (0.29%) to 5916.7 and the CAC 40 adding 16.96 (0.49%) to reach 3467.15.
Increased risk appetite weakened the US Dollar against both Sterling and the Euro, which had themselves suffered earlier in the week as investors moved to the safe-haven US currency after the spate of poor housing and durable goods reports.
Sterling gained 0.34% to $1.5522 and the Euro advanced 0.32% to $1.2701. Credit Agricole commented that 'central bank heads from across the world are likely to attempt to reassure markets that their policies will sustain recovery', making 'downside for the Yen and the Dollar the most likely scenario, with risk assets gaining'. [1]
This afternoon will see the release of all-important US jobless data, with the publication of initial jobless claims for the week to 21 August and continuing jobless claims for the preceding week. A gloomy report from these indicators will send the markets into risk avoidance mode, with safe-havens such as the yen and Swiss franc likely to strengthen as a result.
As of 10.45am (London time), the September futures for the Dow and S&P 500 are pointing to a modestly higher opening on Wall Street, with the Dow up 0.18% and the S&P 500 0.2% higher.
Source: [1] Bloomberg News, 26 August 2010
The above comments do not constitute investment advice and neither IG Index nor SpreadBets.org.uk accept any responsibility for any use that may be made of them.
Advert:
IG Index Spread Betting - No Fees, No Commissions, Free Charts and Live Prices.
Spread Bet on Indices, Forex, Commodities, Shares and more. For details see IG Index.
|
Spread Betting 26 August 2010: 06.30am Update
On Wall Street overnight, the major indices managed to snap their four day losing streak and edged higher on the session.
The Dow Jones Industrial Average was down more than 100 points early before staging a late afternoon rally. Weaker-than-expected reports on new home sales and durable goods orders cast doubt over the current recovery.
The NASDAQ was the top performer, adding 0.8%, while the S&P 500 and Dow Jones Industrial Average rose 0.3% and 0.2% respectively.
In Asia, regional markets are all higher, boosted by the late on rally on Wall Street as well as weaker yen in Japan. The Nikkei 225 and the Shanghai Composite are the best performers, both firmer by 0.6% as blue chip exporters in Japan bucked their recent losing streak. Elsewhere, the Kospi and Hang Seng were 0.3% and 0.1% stronger respectively.
In Australia, the ASX 200 is currently 0.6% firmer at 4346, just off its highs of the session. After treading water for much of the early part of the day, the market is now moving onwards.
The index has been helped by solid performances from the financial, energy and consumer staples sectors, the latter of which is the day’s best performer courtesy of a strong profit result from retail giant Woolworths. Both the materials and industrial sectors are detracting points, however are well off their earlier lows.
Turning our attention to Europe, there's not too much in the way of macroeconomic data due in the hours ahead.
The US weekly jobless claims are perhaps the only key reading, but we do expect to see a scattering of high profile earnings releases including Diageo, Kazakhmys, William Hill, SEGRO. We’ll also hear from G4S out of London, plus Credit Agricole and Accor from Paris.
Looking a little further ahead, tomorrow's GDP figure and the Fed's annual summer off-site meeting in Jackson Hole will both ensure there's more direction to be seen. But the question many will be asking is, given the economic outlook, can further gains for stocks be sustained?
Ahead of the open we're calling the FTSE up 46 at 5155, the DAX up 41 at 5941 and the CAC up 34 at 3484.
The above comments do not constitute investment advice and neither IG Index nor SpreadBets.org.uk accept any responsibility for any use that may be made of them.
Advert:
IG Index Spread Betting - No Fees, No Commissions, Free Charts and Live Prices.
Spread Bet on Indices, Forex, Commodities, Shares and more. For details see IG Index.
|
"Spread Betting 26 Aug 2010" last update by AG, 26-Aug-2010
Warning: Financial spread betting carries a high level of risk. You can lose more than your initial investment or stake. Financial spread betting may not be suitable for all investors. Only trade with money that you can afford to lose. Make sure you fully understand the risk involved. If necessary, seek independent financial advice.
Similar articles:
Spread Betting Daily - last update: 10-Feb-2012
Your daily spread betting update from the insiders. A look at the FTSE 100 and a range of other spread betting markets from Crude Oil to Shares to Gold to . . . read more Spread Betting Daily.
Spread Bets Daily Markets - last update: 09-Feb-2012
Spread Betting Daily News - A daily trading update from IG Index. Every weekday the experts offer their view of the markets . . . read more Spread Bets Daily Markets.
US Spread Betting Markets Trade Lower on Weak Home Sales Data - last update: 27-Jan-2012
In US trade, markets retreated from early highs after home sales data came in weaker than expected. The move saw US spread betting markets shed some of the . . . read more US Spread Betting Markets Trade Lower on Weak Home Sales Data.
FTSE 100 Spread Betting Market Rallies after US Intererst Rate Comment - last update: 26-Jan-2012
The Fed's decision to keep interest rates low for at least another two years while signalling the possibility of further QE reinstated the rally on the FTSE 100 . . . read more FTSE 100 Spread Betting Market Rallies after US Intererst Rate Comment.
Shares Spread Betting: Greek Concerns Calmed by Outstanding Apple Performance - last update: 25-Jan-2012
Very rarely will a single stock have such control on sentiment, but the numbers from Apple seem to have arrested the declining goodwill . . . read more Shares Spread Betting: Greek Concerns Calmed by Outstanding Apple Performance.
UK Shares Trading: Cheming Stocks Fall Despite Announcing Profit Growth - last update: 24-Jan-2012
Defence firm Chemring dropped 14% today despite announcing further profit growth, as UK shares trading investors fretted about possible additional reductions in defence . . . read more UK Shares Trading: Cheming Stocks Fall Despite Announcing Profit Growth.
Indices Spread Betting: FTSE 100 Opens Higher on Mining Stock Performances - last update: 23-Jan-2012
The FTSE 100 moved slightly higher this morning, held up by mining stocks, but the overall atmosphere remained nervous due to the absence of any . . . read more Indices Spread Betting: FTSE 100 Opens Higher on Mining Stock Performances.
Vodafone Spread Betting Market Rallies on Favourable Legal Ruling - last update: 20-Jan-2012
In UK shares spread betting, telecoms giant Vodafone rose 1.8% to 177.7p after reports that a court in India had overturned an earlier ruling against the company. The legal . . . read more Vodafone Spread Betting Market Rallies on Favourable Legal Ruling.
Shares Spread Trading: ASML Holdings Stocks Surge on Higher Q1 Order Forecasts - last update: 19-Jan-2012
The tech stocks were a standout after ASML Holdings, Europe's largest semi-conductor company, forecast higher first quarter orders and circuit . . . read more Shares Spread Trading: ASML Holdings Stocks Surge on Higher Q1 Order Forecasts.
Tullow Oil Sees Shares Plummet as Investors Ignore Positive Reports - last update: 18-Jan-2012
Tullow Oil dropped 6.6% this morning to 1358p, as investors ignored the report of a good 2011 and focused on delays to production at . . . read more Tullow Oil Sees Shares Plummet as Investors Ignore Positive Reports.
Spread Betting Daily Index - An index of Mid-Morning Daily Spread Betting Reports covering the key Index, Forex, Shares and Commodities markets.
|
|
|
Free Financial Email: Latest Spread Betting Offers and where to find narrow spreads.
Click here to sign up.
|
|
