Spreadex Market Update
Big gains for commodity stocks whilst travel sector tumbles on rising oil prices
Better than expected manufacturing and industrial production figures, at 0.5% and 1.0% respectively, pushed the FTSE to the positive side of the red/green divide this Wednesday, after the UK index had struggled for direction just after the bell. A slight improvement in Tesco’s performance, now up around half a percent after its profit-shedding half year report, and stable growth from SABMiller, which is set to discuss the latest offer from AB InBev despite chairman Jan du Plessis claiming the Belgian company is ‘very substantially undervaluing SABMiller’, helped with the UK index’s mild 10 point increase.
Yet if anything the FTSE should be on a tear; its influential commodity sector is seeing huge 10% plus gains from Tullow Oil, Anglo American and Vedanta Resources, alongside a 30% leap for Lonmin and healthy growth from oil and mining big boys like Shell and Rio Tinto. However those commodity gains come at a cost and the UK index is likely being hampered by the travel and tourism sector, with hefty losses for easyjet, IAG, Tui and Carnival as oil prices continue to rise.
The DAX was the best performing European index of the morning, up around 70 points as Volkswagen surged by nearly 10% after comments from (the unenviably appointed) new CEO Matthias Mueller that claimed ‘all cars should be in order by the end of 2016’. We will see how accurate (and, more importantly, costly) that assessment proves to be, but for now it has managed to have the thrice-boosting effect of lifting not only VW, but the auto-sector and the German index as well.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
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.
