GKN, one of the world’s largest engineering companies, has been strongly on the up since the summer. It recently reached an agreement with Magellan Aerospace, securing a work package that includes structural components for the Airbus A320 and A330 aircraft. Its share price has already jumped this week, but it could go even higher. Capital Spreads quotes 217.2p-217.9p.
Mears Group, which provides maintenance for social housing and domiciliary care, has seen good revenue growth and also has well managed cash flow. You might think Mears would fall out of favour with investors following the government’s cuts but the opposite could be true. Councils will seek efficiency gains and Mears could fill the gap. Mears’ share price has had a good run since the start of July when it was at a low of 236p. Spreadex offers a March quote of 287p-290.5p.
As the year draws to a close and as interest wanes, traders are going to be asking where the upside is now going to come from. While the FTSE 100 has had a positive year, it is struggling to push through the 5,900 level. Having previously dropped almost 10 per cent from this level in only six weeks, traders are likely to take money off the table in anticipation of any sell-off. ETX Capital is quoting 5,873-5,874 for the daily rolling FTSE 100 contract.
Those who were tempted to jump in to gold last week on its dip below $1,400 might have been a bit premature – the technical indicators had yet to give a clear buy signal and a five-month uptrend line was broken on Wednesday. But the 50-day moving average held the slide around $1,270 and it is now starting to look more interesting from a buy point of view, with Bollinger Band support and a turning relative strength index (RSI). Spread Co offers a spread on spot gold of $1,373.2-$1,373.6.
The agreement of a crisis mechanism has stabilised the euro for the time being. But until the single currency is able to get above $1.3500, downside pressure remains intact. CMC Markets’ spread on euro-US dollar is $1.3333-$1.3336.