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CFD Traders DiarySigns of sector rotation as Footsie falls back on Fed decision26/6/2008 Last night's US pullback following the unchanged rates decision by the Federal Reserve saw shares in London opening lower and by mid-morning the index was down 35 points. Of more interest though was a sharp rise in many beaten down stocks including retailers, pub companies and banks, and with the miners shoeing weakness it suggests a potential bout of sector rotation which may be worth following. One of the big movers yesterday was the LSE and today it unveiled plans to create a pan-European non-display trading platform in partnership with Lehman Bros. The multilateral trading facility, to be named Baikal, is for the execution of non-display orders, and so far the market is not impressed with the shares reversing heavily. Nevertheless, we may be over the worst here, so we will watch closely at this intriguing situation.
Talking of beaten down shares, DSG International fell back again after it saw underlying pre-tax profit fall to £205.3m from £295.1m last year. It said that the economic backdrop continued to be difficult and remained very cautious about consumer confidence in many of the markets in which it operates. Whilst these shares participated in yesterday's rise, they are also back down today and we are much more cautious here. |
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