After a miserable day yesterday the FTSE 100 looks to be ending the week on an upbeat note as it makes a concerted effort to tackle the 6700 level in early morning trading.
The naysayers and doom-mongers look to have finally run out of steam this week but only after they were able to knock over 200 points off the markets first. The four-day selloff that the markets have been subjected to gives the distinct feeling the FTSE is being oversold and a combination of shorts profit-taking and buy-on-dip traders should see considerably less red on the screens today.
Lighting the way forward, having left everyone else in a puff of smoke, Imperial Tobacco Group are up by over 3% in the first couple of hours of trading. Most of this move is due to the looming merger between competitors Reynolds and Lorillard who both have to sell assets to Imperial at discounted prices, while at the same time opening up fresh exposure to the profitable US market. Ofgem’s approval of underwater cabling in the Moray Firth in Northern Scotland is good news for SSE who will see its renewable energy arm boosted by this news. Experian, the UK-based credit checking firm, have enjoyed a positive first quarter with revenues up by 4%, which have helped move the shares over the £10 level.
The US reporting season picks up the pace today with the release of second-quarter figures from Wells Fargo, the first of the big US banks to report. Being focused on the debt market and less exposed to the investment market, this should ensure a solid start for the banks. Ahead of the open, we expect the Dow Jones to start 53 points lower at 16,932.
The naysayers and doom-mongers look to have finally run out of steam this week but only after they were able to knock over 200 points off the markets first. The four-day selloff that the markets have been subjected to gives the distinct feeling the FTSE is being oversold and a combination of shorts profit-taking and buy-on-dip traders should see considerably less red on the screens today.
Lighting the way forward, having left everyone else in a puff of smoke, Imperial Tobacco Group are up by over 3% in the first couple of hours of trading. Most of this move is due to the looming merger between competitors Reynolds and Lorillard who both have to sell assets to Imperial at discounted prices, while at the same time opening up fresh exposure to the profitable US market. Ofgem’s approval of underwater cabling in the Moray Firth in Northern Scotland is good news for SSE who will see its renewable energy arm boosted by this news. Experian, the UK-based credit checking firm, have enjoyed a positive first quarter with revenues up by 4%, which have helped move the shares over the £10 level.
The US reporting season picks up the pace today with the release of second-quarter figures from Wells Fargo, the first of the big US banks to report. Being focused on the debt market and less exposed to the investment market, this should ensure a solid start for the banks. Ahead of the open, we expect the Dow Jones to start 53 points lower at 16,932.
Recommended Content
Editors’ Picks
EUR/USD remains on the defensive near 1.0680 on Dollar strength
The solid performance of the Greenback keeps the price action in the risk-associated universe depressed so far on turnaround Tuesday, sending EUR/USD to multi-day lows in the 1.0680 region.
GBP/USD declines toward 1.2500 on renewed USD strength
GBP/USD turned south and dropped toward 1.2500 in the second half of the day. The US Dollar stays resilient against its rivals following the strong wage inflation data and doesn't allow the pair to gain traction.
Gold stable below $2,300 despite mounting fears
Gold stays under selling pressure and confronts the $2,300 region on Tuesday against the backdrop of the resumption of the bullish trend in the Greenback and the decent bounce in US yields prior to the interest rate decision by the Fed on Wednesday.
XRP hovers above $0.51 as Ripple motion to strike new expert materials receives SEC response
Ripple (XRP) trades broadly sideways on Tuesday after closing above $0.51 on Monday as the payment firm’s legal battle against the US Securities and Exchange Commission (SEC) persists.
Eurozone inflation stable as the outlook on prices gets increasingly muddied
Eurozone headline inflation remains stable at 2.4%. With higher energy prices and improving domestic demand, questions about the direction of inflation become louder.