FTSE trades around 6000 as oil firms lag
City Index December 30, 2010 3:57 PM
<p>Weakness in heavyweight energy stocks BP, due to an equipment malfunction at its Cherry Point refinery, and BG Group has weighed marginally on the FTSE […]</p>
Weakness in heavyweight energy stocks BP, due to an equipment malfunction at its Cherry Point refinery, and BG Group has weighed marginally on the FTSE 100 Index on Thursday, which traded flat to hover near the psychologically important 6000 level.
Not much activity is expected over the course of the session of course, with many traders eyeing their New Years Eve parties tomorrow rather than any stock picking.
Most of the early activity we have seen thus far has been one of small share sales in energy firms and speculative buys in the miners, which continue to bull their way higher after Copper hit a new record high yet again today.
Shareholders of the key miners have firmly shrugged off both the Chinese rate hike and data out this morning which showed that Chinese Purchasing Managers Index fell to a three month low in December, indicating that business expansion in the worlds fastest growing economy could be slowing.
It will be interesting to see how much of the December rally was hot air when traders return to their desks on mass in January and look at equity prices that have rallied over 8% in December alone. There is every chance that there could be a small correction into the new year as prices normalise with the return of normal market volumes but if the FTSE can retain above the 5900, there is every chance the rally may continue into the new year.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.