The spectre of the global economy being plunged into recession saw oil prices sliding last week. The better than expected non-farm payroll reading may have served up some support in the short-term, but with question marks remaining over the impact of the US rating downgrade and the risk of the Eurozone debt crisis, those who pumped prices so high may be less enthusiastic for some time yet. IG Index quotes $87.15-$87.19/barrel on September US light crude oil.
Baking retailer Greggs hasn’t had the best of months, falling over 50p in value. This could in turn prompt it into giving a profit warning when it releases figures to the market tomorrow. Another factor is that the company is also trading at quite a premium in comparison to its sector. Capital Spreads quotes 496.4p-500.2p.
Stocks were plunged into chaos last week and many may have been sold off too far. BP plummeted back towards the £4 level, as much was wiped off its share price. Buyers might start to sniff out some bargains. Capital Spreads quotes 406.7p-407.5p.
The market sell off could be over done. The FTSE 100 has fallen a lot and even if global growth does slow a little, corporate earnings could remain relatively robust. Capital Spreads quotes 5,269.0p-5,270.0p.
The ultimate safe haven play remains in demand, even at these levels. There could be some scope for short-term reversions as profit taking is seen on the back of any glimmers of optimism. But with new money continuing to flow into the global economy, gold could shine. IG quotes $1,654.50-$1,655.0/oz.