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The FTSE has added 2% in early trade as some of the basic resource stocks are presently retracing some of yesterday’s losses on foot of some consolidation in copper and oil prices. The oscillation in equity indices between big declines and big rallies and the nervousness in investor sentiment is evident. The FTSE has been stuck in a 300 point rnage since the beginning of the month and would really need to make some push through the 6300 to put aside any true bearishness.
Randgold (-0.43%) Rated new hold at Jeffries, PT 4000p.
Fresnillo (Flat) shares started well, rising 1.5% but as precious metals settle following yesterday’s drive, the price has pared back. The company announced yesterday that it has completed a $6m investment in the Coneto Project with Orex.
Glencore (+5.11%) despite suspicions that recent steps from the company may be insufficient to reduce debt and bulk up its balance sheet, Glencore is a top riser today. The expression ‘coming off a low base’ has never been more apt. Broker sentiment on the stock seems to be warming nevertheless with 50% having a buy rating and an average 12 month target price of 201.25p.
Anglo American, Rio Tinto and Antofagasta have all seen early gains in excess of 2%.
Johnson Matthey +5% is the top riser as its stock was raised to buy at Redburn following the rather overdone sell off on the back of the VW debacle. To say that traders jumped the gun in respect of this company is probably an understatement. Shares lost more than 11% of stock value last week despite the fact that catalysts account for more than 15% of profits.
German automakers are also staging a bounce back from the recent sell off this morning with BMW(+5%) leading the charge and Daimler not far behind (+3.9%). Volkswagen (+2.59%) is up on the day, beating the benchmark but underperforming its peers as uncertainty still weighs on the fall out of this scandal.
Given that British banks approved its highest number of mortgages in 18 months last month; a five year high its little surprise to see the housebuilding sector looking chirpy this morning. The record low interest rates look set to continue for a while in the UK. Janet Yellen more or less implied a hike in December during her statement last night, thus using historical trends, the BOE may well not look to rise until at least March of next year.
Berkeley Group, Persimmon, Land Securities and Taylor Wimpey have all added 0.85% in early trade.
Imperial Tobacco (-0.69%) Continued bid speculation in the UK press keeps this stock elevated to a now all time high and price action bang on the average broker 12 target price in early trade
GKN +2.38% is also benefitting from some bargain hunting in the wake of the VW scandal. Average 12 month price is 363p.
US GDP final print is released this afternoon and given that Yellen’s speech more or less confirmed that (depending on data) a rate hike could be expected before the end of the year. Should the number meet expectations, this may well see the dollar pursue higher levels. The probability of monetary tightening in December is at 50%.
We are calling the Dow higher by 145 points to 16346.
Whilst risk sentiment has been healthy across the week, this swelling optimism boosted US stock markets to an all-time high overnight. A rally in tech stocks, which have done a lot of lifting for the indices over the year, in addition to fading concerns over U…Read more
Despite a shaky end to trading on Wall Street overnight, which saw the Dow gain 0.6%, the S&P just 0.1% and the Nasdaq slip by the same, Asian markets moved broadly higher on improved sentiment. European bourses are taking the lead from the US over Asia, w…Read more
Asian markets took the lead from Wall Street overnight, rallying as the latest tit for tat measures in the escalating trade spat have not been quite as severe as the markets had been expecting. Tech stocks were also heavily in demand, bouncing back after steep…Read more
Traders are faced with a sea of red in risk-off trading as markets are set to open on Tuesday. Despite the fact the market has been expecting an escalation in trade tensions between the world’s two largest economies with further tariffs from Trump; the reality…Read more
Escalating trade tensions will once again be a central theme to driving sentiment and trading this week, with President Trump widely expected to levy tariffs on a further $200 billion worth of Chinese imports, potentially as soon as today. The elevated trade c…Read more
European bourses are set to take the lead from a positive session on Wall Street and Asia overnight. A drive higher from tech stocks on Wall Street helped lift Asian equities after their recent battering, pulling them off 2-year lows.
Asian markets were endin…Read more
Today will be a busy day for traders with 2 central bank rate decisions and US inflation data all due for release within a few hours of each other. The BoE monetary policy announcement will kick things off, followed shortly after by the ECB rate announcement a…Read more
Wall Street traded higher overnight shrugging off trade tensions, amid rallying tech stocks led by Apple and a 2% gain in oil prices. Meanwhile, Europe is looking to take the lead from the US with European bourses broadly looking to start the session on the fr…Read more