|
CFD Traders DiaryEarly pause for breath but buyers are still around28/3/2008 Shares in the US took a pause for breath yesterday despite the economic news not being as bad as seen previously but overall volumes shrank and we are still seeing good buying support in London. As we write the FTSE 100 index is ahead by around 20 points, and once again the main focus has been on corporate trading reports. In the pub sector, Punch Taverns said it had ended talks with Mitchells and Butlers over a straight merger, saying that the terms proposed were no longer in the best interests of its shareholders, but it did add that it was mulling a possible deal with other parties at a lower price. The market was not surprised given how badly both shares have traded recently and there were small rises on the news. In the same sector, Enterprise Inns said trading was in line with last year, but as is normal for most consumer stocks it cautioned that consumer confidence was low and trading conditions continued to be difficult. Nevertheless, investors were relieved that the news was not worse and the shares were up over 8% mid-morning, which looks a bit excessive to us. An interesting area to watch is the mining sector where many of the constituents have recovered much of the losses seen last week after the sharp fall in commodity prices. Vedanta and Anglo American are the leaders this morning with 3% plus rises, but one wonders whether we are in the midst of a suckers rally as buying volume has not been that high. Nimble traders might look for any daily break of previous lows to open short term sell positions |
|
|
