THERE’S plenty of economic announcements and data for the markets to digest this week. The Federal Open Market Committee (FOMC) will give its verdict on quantitative easing on Wednesday, while the Bank of England and the European Central Bank announce their decisions on Thursday lunchtime. Markets have recently retraced and some good data could provide a buying opportunity in the Dow. Capital Spreads quotes 11,050-11,052 for Wall Street.
Gold has struggled in recent days since the US economy seems to be faring better than imagined. Concern that we’d see a quick test of the $1,400 level is ebbing, although some may see current levels as merely a dip for buying into. The current IG Index price on spot gold is $1,337.00-$1,337.50.
With the investigation into the BP oil disaster suggesting some of the liability might be passed from BP to Halliburton, the three-month sideways movement of the BP share price might offer some upwards momentum. WorldSpreads offers a 424.2p-425.2p spread on BP.
Ahead of its third-quarter results out tomorrow, BG Group announced on Friday that production at the Tupi field had begun. The shares are coming up against a long-term resistance level at £12 but are currently supported by the 14-day moving average at £11.85. Look to sell around £12 with a target of £11.50. Spread Co offers £11.896-£11.918.