HOME Retail Group has seen its share price underperforming the market and its sector this year: the share price is down a whopping 30 per cent year-to-date. Wednesday’s interims, however, should provide us with some good news and investors might look favourably on the stock as the Christmas period approaches. Capital CFDs quotes 219.2p-219.9p.
Euro-dollar blasted up to $1.4158 on Friday before closing some 180 pips lower at $1.3977. But industrial unrest in France combined with comments from the IMF’s John Lipsky suggesting that QE2 would “depend on data” helped keep the euro under pressure on Monday. Spread Co offer a 0.8 pip spread on euro-dollar of $1.39520–$1.39528.
But it’s the pound that will be in the spotlight this week due to tomorrow’s fiscal review. CMC Markets’ spread on euro-sterling is £0.87432-£0.87450.
Tomorrow’s Bank of England meeting minutes could move stocks around. Although there are calls for more cheap money to be pumped into the system, relatively high inflation weighs against the decision. Signs of a hawkish stance developing in the Monetary Policy Committee could see traders looking to book gains in the near term. Current IG Markets price on the FTSE is 5723-5724.
German economic sentiment data is due this morning in the ZEW survey and expectations are that the situation will again worsen in October. European debt concerns still linger and strikes seem to be spreading across the trading bloc. Germany alone might avoid the worst of these issues but the risk of demand slowing from key trade partners certainly needs to be considered. Current IG Markets price on the Germany 30 is 6521-6522.
Mining stocks have been in focus this week after Rio Tinto and BHP Billiton had to scrap their joint iron ore venture and early yesterday the sector suffered from a bout of selling.
But there is still a strong upwards trend for miners and yesterday’s sell-off could prove a buying opportunity, especially with Anglo American reporting on Thursday. Capital CFDs quotes 2843.5p-2847.5p for Anglo’s share price.
With Citigroup’s figures coming in slightly better than expected, interest in the other financials over the rest of the week has been raised. WorldSpreads offers a $24.99–$25.05 spread on Morgan Stanley, which reports on Wednesday.