With continuing speculation in the markets about the safety of European sovereign debt, gold could once again be viewed by the markets as a safe haven. With the precious metal making a steady charge back up towards the $1,400 level, a breach above here could well lead to an extended move higher. WorldSpreads offers a spread on the rolling spot price of $1,391.25-$1,391.75.
The tide seems to be turning for travel firm Thomas Cook, after its shares suffered in late September from a profit warning. Yesterday it released its preliminary 2010 results statement, revealing a lower-than-expected 6 per cent fall in adjusted underlying operating profits. The deal with Russia's VAO Intourist, concluded on 25 November, adds a new dimension to the group and analysts says it fully exposes Thomas Cook to immense emerging markets growth potential. Spreadex offers a December spread of 176.5p-178.3p
Broadband satellite operator Avanti Communications yesterday reported better-than-expected results and already has a strong balance sheet. The Aim-listed start-up company already has one satellite in orbit and a second in the pipeline. Analysts at Galvan Research say that with the first satellite successfully launched, the company will be viewed by analyst and the markets alike as a maturing satellite communications provider. “This alone will prompt a near-term re-rating of the stock and will in our view propel the share price to new highs long before HYLAS 2 [the second satellite] reaches the launchpad,” Galvan says. Spreadex quotes a rolling spread of 719.1p-730.4p.
Markets went a little crazy yesterday afternoon after the news came through that the US said that it was prepared to make additional contributions to support European bailouts. Stocks and commodities rallied and the dollar got smashed. Yet in spite of this shoot higher, sterling-dollar still failed to take out the important $1.5640 level for the second time in a day. Traders should look to sell further rallies in the $1.5620-$1.5640 area. Spread Co offers a spread on sterling-dollar of $1.5612-$1.5614.