The fortunes of the partially state owned Lloyds Banking Group have failed to improve in recent weeks. Its shares are sitting just a few pence above year-to-date lows, with the market still generally lacking in enthusiasm for the stock – and of course all banking stocks are trading at rock-bottom. However, with the likes of Germany and France poised to throw in a significant tranche of funds to bolster the EFSF, even lenders such as Lloyds that won’t directly be affected will be hoping this might mark a turning point. IG Index quotes 32.6p-32.7p.
The FTSE 100 behaved as we thought it might for the past week: finding support from the former resistance of the top of the trend channel it was in for months, around 5,360-5,400. There is reason for now to change that strategy: buy around these levels with a stop loss around 5,320, with a target of 5,550-5,600. Spreadco quotes the UK’s index of 100 of the most highly capitalised UK companies at 5,489.4-5,490.2.