A REPORT from the US Department of Agriculture at the end of last week, flagging a marked increase in the amount of corn being sown by farmers, sent prices tumbling. A good harvest will certainly take the pressure off food supplies and in turn the prices being charged globally, but some will simply see this weakness as a buying opportunity. IG Index offers $6.03-$6.04 per bushel.
The markets are breathing a sigh of relief that Greece is out of the immediate firing line since the austerity measures were passed last week. This was the green light investors needed to buy up risk. While the recent rally may be built on shaky foundations, stocks are likely to benefit for as long as it lasts. Forex.com has a current spread for S&P 500 of 1,328.25-1,329.
Recent weakness in the sterling-euro pairing has seen the pound slip to its lowest level since May 2010. Purchasing Managers’ Index (PMI) figures for construction are due out today. Having risen from 53.5 to 54 last month, a disappointing figure today could well drive sterling even lower. CMC markets offers a spread on sterling-euro of €0.9035-€0.9036.
House builder Persimmon has had a decent first half of the year, with its share price gradually inclining since the turn of 2011. It recently announced in April that new home sales have increased since January, and have just signed up as one of the house builders the government will use as part of its new scheme for first time buyers, called FirstBuy. It is due to update the market tomorrow and its developments could be in line with its sector counterparts. Capital Spreads quotes 482.5p-483.8p.
Easyjet's share price has still failed to meaningfully recover from its profit warning in January, spending most of its time hovering around 350p. Since oil prices have come off its highs, an upbeat trading statement could be enough to send the share price higher again. Capital Spreads quotes 357.0p-358.9p for the stock.