|
CFD Traders DiarySellers appear in the US after cautious Fed comments1/5/2008 There was some selling in the US last night after the Federal Reserve's decision to cut interest rates by 25 basis points, and the feeling in some quarters was that we might be close to the end of the rate cutting exercise despite the accompanying cautious comments by the central bank. Even so, the volatility in world markets has died down considerably this week, and it is quiet again today so far, so most of the CFD action has been in special situations or sector considerations. There was an early rebound in the miners this morning after BHP Billiton's board approved a $1.9bn expansion of the Worsley alumina refinery in Western Australia, although Eurasian Natural Resources Corporation drifted back as it exercised an option to buy a 50% stake in Bahia Mineracao Limitada (BML) from Zamin for $300m in cash. Our view is that we have not seen the end of the current short term falls in commodities, so there could be more downside in the sector in coming weeks.
Another stock edging back is Hammerson which today confirmed that there had been further declines in UK property values in the first quarter of the year as activity in the real estate market remained restricted. Whilst the discount to NAV for some of the leading property players might look very attractive, we see more of these types of comments this year, so traders should watch for swift price and volume trend changes.
|
|
|
