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CFD Traders DiaryUS corporate reporting season gets off to a poor start8/4/2008 As usual, Alcoa kicked off the latest reporting season in the US, and investors saw their figures as slightly disappointing. To add to this, figures this morning from the Halifax showed a pick up in the rate of house price falls in the UK, with a drop of 2.5% in March, and this has led to the FTSE 100 index showing a loss of 50 points mid-morning. We have drawn attention in recent months to the ‘smart money' buying into the markets on dips, but this has tailed off recently and we could certainly be due a pullback for a while after the good gains seen in recent weeks. Noticeably, buying volume in London has been very poor in the last few days, and only the miners have looked particular bullish, so any return to falling commodity prices could see more sustained falls in the index. On a quiet day for UK corporate news, BT has announced a management change with Ian Livingston, current CE of BT Retail, to succeed Ben Verwaayen as CE of the group on 1 June. The market has not been inspired so far by this appointment, and our view id that BT will shortly settle back into the downtrend within which it has traded for most of this year. |
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