Spreadex Market Update
Gains for Lonmin and Brent Crude fail to inspire FTSE this Monday
This despite the fact that Brent Crude itself only widened its gains this morning as Moody’s came out in support of the Goldman Sachs note stating the oil glut was easing, causing the black stuff to jump by around 2%. That means the commodity is now, ahem, barrelling towards the $49 mark, a level it hasn’t seen in around 6 months.
In the oil sector BP and Shell nudged slightly higher as Brent Crude continued to rise, whilst the miners were led by Lonmin, which surged by 18% as the day went on. The South African platinum producer, which, remember, was nearing 0p last December, impressed investors this Monday by revealing it had shrunk its half year pre-tax losses to $21 million from $118 million year-on-year thanks to a 1.3% rise in revenue to $515 million and, more importantly, a robust series of cost-cutting measures.
Whilst the FTSE has so far failed to capitalise on the commodity upturn the Dow Jones looks set to regain a tiny portion of the ground it lost last week (where it shed around 200 points). The state of the US open will in part be dictated by the latest Empire State manufacturing index figure. Things don’t look too promising, however; having hit a 14 month high of 9.6 in April the number is expected to slip to 7.2, a fall that may take the wind out of the Dow futures before the bell rings on Wall Street.
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