Weekly Trading Report 10 January 2011 - Last Week's Trading Highlights
The FTSE 100 began 2011 by repeating its late-December break past the 6000 level. The UK’s blue-chip index closed the year’s first trading day on Tuesday at 6013.87 – a rise of almost 2% – soaring to a 30-month high after optimistic indicators and M&A speculation. Tuesday’s manufacturing PMI rose from 57.5 to 58.2 in December, providing evidence that UK manufacturing activity grew at its fastest pace since 1995.
Elsewhere in the indices spread betting markets, the news helped the FTSE 250 climb 164 points to its highest level since July 2007. Investor optimism was further fuelled by reports that Royal Dutch Shell discussed a takeover of BP during the Gulf of Mexico oil spill, sending BP up almost 6% on Tuesday.
Further encouragement was provided by positive data for Eurozone manufacturing, where the sector expanded in December for a 15th consecutive month. The news wasn’t all rosy, however, with UK construction PMI slipping to a reading of 49.1 last month, indicating contraction, while Thursday’s service industry survey also showed contraction in December.
Both declines were attributed to December’s snowfalls. Data from the US provided some cheer though, with the US services industry announcing its biggest expansion since 2006, while US unemployment dropped to 9.4% in December.
Also adding a touch of gloom last week to the online spread betting markets was the start of the UK’s new VAT rate, now up 2.5% to 20%. The UK Government’s move has not been welcomed by retailers, with the year’s early updates mixed. Fashion chain Next revealed a loss of £22 million in Christmas sales, again owing to the inclement weather, while HMV saw sales slide 10.2% year-on-year, and announced the closure of 60 stores this year.
On Thursday both Mothercare and Clinton Cards issued profit warnings after disappointing festive sales figures. Two firms not affected by the snow were Majestic Wine, after sales grew 3.7% in the nine weeks to January, and outdoor clothes retailer Blacks, which saw numbers jump 10.2% across like-for-like stores in December compared with 2009.
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Weekly Trading Report 10 December 2011 - The Week Ahead
Indicators
The first full trading week in the UK is a busy one, starting with trade balance figures due on Wednesday. A BoE rate announcement is due the following day, though another month at 0.5% is anticipated.
Thursday also sees the release of industrial and manufacturing production data, with PPI numbers on Friday. The US is similarly packed, with November trade balance and December PPI on Thursday, and December CPI and industrial production data closing the week.
Company Results and Reports
At home, supermarkets are in the spotlight, as Morrisons, M&S and Sainsbury’s release quarterlies on Monday, Tuesday and Wednesday respectively. Investors will be hoping winter profits are not as badly weather-affected as their high street peers. The focus then shifts to the US with Q4 figures from Intel on Thursday and JP Morgan on Friday.
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For previous weeks see below.
Note - Spread Betting carries a high level of risk to your capital and you can lose more than your initial investment, it may not be suitable for all investors. Ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved and seek independent financial advice where necessary.
'Financial Spread Betting 10 January 2011', Review by D. Jones, last update: 10-Jan-11
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