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CFD Traders DiaryTight trading range ahead of Fed decision30/4/2008 It was a typically nervy opening this morning with traders tending to square some positions ahead of this afternoon's important Fed rate announcement which is expected to see a reduction in US interest rates to just 2%. The focus early on has been on a series of corporate statements in London across many sectors, but leading the way down again is the mining sector on another fall in the price of gold and other commodities. We have been warning for a while of the lack of underlying buying volume in the sector recently, and we see further downside here in the short term. At the top end, Home Retail pleasantly surprised the market as it raised underlying annual profits by 15% to £433m, at the top of forecasts, but cautioned that it faced a weaker consumer spending outlook this year. There was a sense of short term relief and this should underpin the shares for a week or two although the longer term trend is by no means certain
Another share to watch is BSkyB which also slightly beat forecasts in Q3 with adjusted operating profit of £521m, down 6%, and revenues of £3.71bn, up 10%. The group added 56,000 net new customers with the churn rate at 10.5%, and this is one share where quarterly results have a major impact on broker forecasts. It looks as though the short term downtrend may now be broken and we see higher prices here for a few days.
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