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CFD Traders DiaryEarly rally pushes Footsie up in the wake of US gains17/7/2008 We saw the biggest rally for many months yesterday in the US, with financials leading the way at the expense of oil stocks, which fell as crude dropped for the second day. That theme has continued today with the FTSE 100 index up over 90 points at one stage although it has drifted back a little since then. Barclays, Royal Bank of Scotland, Lloyds TSB and Standard Chartered were all big winners early on, but there were even bigger rallies in the beaten down leisure and housebuilding sectors, with Taylor Wimpey, Persimmon and William Hill all showing major rises. If buying volumes stay high, the we may have seen an important low for some stocks, but there are still likely to be casualties dotted through these sectors. There was a positive reaction in the retailing sector to the news that Kingfisher had announced the appointment of DSG International\'s finance director Kevin O\'Byrne, who will succeed Duncan Tatton-Brown, from 1st October 2008. The shares were up a healthy 8% early on but profit taking has halved the gain, and we would not chase these for now. Elsewhere, Rolls-Royce rallied on reports that it is to expand its nuclear business, adding that orders from leasing companies AWAS and LCAL for Trent engines would be worth nearly $400m. Our feeling is that Rolls Royce has much more to do to change the immediate outlook, and for now these shares should also be left. |
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