Spreadex Market Update

Senate leaders poised to reach agreement



Senate leaders appeared poised to finally reach an agreement today, with the debt ceiling deadline only a couple of days the need for compromise couldn’t be greater. The timing of a deal in the senate is crucial being only the first step in the process of legalising a deal. It has just come to light however that the republicans disapprove of the spending provision in the proposed senates plan. Republican Paul Ryan is quoted as saying “We need to do more than that; a budget resolution isn’t enough to solve the problem.” This revelation caused a sell-off in the Dow and S&P on the open as it appears any deal that might be passed is going to go down to the wire.

Inflation continues to rise in the UK with CPI coming in this morning at 2.7% beating it’s forecast by 0.1% helping push the markets up this morning, anticipation of a deal in the US initially provided a boost to the markets, but the recent news from capitol hill has led to a 20 point selloff so far.

George Osborne today unveiled plans to create major trading links between the UK and China making London a major Hub for Chinese Renminbi. The goal being improved relations between the two counties and positioning the UK as the go-to centre outside of China and Hong Kong for Chinese currency which should provide a huge boost to the UK financial services.

Risers:

Rio Tinto, +3.4%
Leading the way amongst FTSE 100 constituents, Rio Tinto investors have much to cheer. Rio has posted strong rises in output amongst a number of commodities including diamonds, iron-ore and coal whilst also raising the annual copper output target.

WPP, +2.33%
Shares in the advertiser have surged after confirming the acquisition of IM2.0, a leading digital advertising and media agency in China. Established in 2008, IM2.0 provides a range of services, including online strategy, creative design, website development and maintenance, online campaigns, mobile application development, media optimization and data analytics.

Bellway, +3.03%
A long list of positive developments at Bellway have helped the share to register impressive gains during today’s session, most noticeably a 33.8 percent rise in profits amid “favourable market conditions”. Bellway are continuing to see strong demand and are seen to be building at full capacity. The governments Help to Buy scheme has created the strongest housing market since the crash and Bellway have consequently raised dividend by 50 percent and is eying major volume growth.

Ashtead Group, +2.62%
Ashtead Group was upgraded by JPMorgan Chase & Co. to an “overweight” rating in a research note issued today. The firm currently has a 734p price objective on the stock. JPMorgan Chase & Co.’s price target would indicate a potential upside of 16.69% from the company’s current price.

Toumaz, +22.22%
Leading the way amongst AIM listed shares, Toumaz shares have risen spectacularly after securing a significant North American distribution agreement with NantHealth Group. A pioneer in low-power wireless semiconductor and software technologies. This new agreement is structured to accelerate the commercial exploitation of SensiumVitals® technology, its ultra-low power system for wireless monitoring of patient vital signs.

Fallers:

Burberry Group, -4.79%
With the equity market buoyed amid optimism over U.S debt deal, Burberry is the only share within the FTSE 100 to register what could be considered considerable losses. Burberry shares have taken a knock after longstanding CEO Angela Ahrendts was set to join Apple. Ahrendts will join Apple to take up a newly created position as a senior vice president with oversight of Apple retail and online stores.

Kenmare Resources, -4.51%
Stock analysts at Westhouse Securities dropped their price target on shares of Kenmare Resources from 32p to 30p in a report issued today. The firm currently has an “add” rating on the stock. Westhouse Securities’ price objective would indicate a potential upside of 18.11% from the stock’s previous close.

Serco Group, -1.21%
Despite securing a major three year contract with Sellafield Ltd to assist them with the delivery of their Emergency Management Improvement Programme, shares in the international service company have plunged. The initial three year contract has an option to extend by a further twelve months and is worth in around £16m.

Chamberlin, -12.86%
Chamberlin, the specialist foundry and engineering group, warns it will report a pre-tax loss for the year to the end of March 2014. The group says a review of its financial forecasts have been carried out following the appointment of a new management team last month.

Lombard Risk, -8.33%
Lombard Risk Management said it swung to a half-year pre-tax loss after an increase in administrative expenses and a rise in losses as a result of depreciation and amortisation. The company, which provides risk management software to banks and other financial institutions, said it made a £934,000 pre-tax loss for the six months to September 30, compared with a £1.3 million pre-tax profit for the corresponding period last year.

DISCLAIMER


Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.

Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.

No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.

The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.