MARKETS rarely go up or down in a straight line and why should the FTSE be an exception? Ten straight days of negative closes has left the FTSE 100 looking pretty oversold. Although sovereign debt concerns still hang over the market like a dark shadow, equities could experience a sharp pull back in coming days. Given the recent sell-off, investors could begin to pile back in for the Santa Rally. ETX Capital quotes 5,112-5,114 for the UK 100 rolling daily contract.
Retailers will be in the spotlight this week following on from the US Thanksgiving mad shopping bonanza, and to see if any of the frenzy will rub off on UK consumers. Next, a bellwether for the high street, has seen its share price rally almost 30 per cent in 2011. So can there be more upside for the retailer? Capital Spreads quotes 2,586.6p-2,591.4p for the shares.
Thomas Cook’s share chart has resembled an alpine ski slope this year, sliding 95 per cent to lows of 9.09p last week, with one final steep lunge from 40p to 10p on Tuesday. But those brave traders who like to take the Black Runs and started buying at 9, 10 and 11p saw their investments gain over 100 per cent by Friday, as Thomas Cook took off to climb towards 20p. They didn’t just book a nice profit, they Thomas Cooked it. Spread Co offer a spread on Thomas Cook of 17.58p-17.60p.
Kingfisher is the largest home improvement retailer in Europe and the third-largest in the world. When it releases its third quarter trading update on Thursday, investors will be looking to see how the group has held up over a difficult quarter. With 860 stores in eight countries and brands including B&Q, Castorama, Brico Depot and Screwfix, the company has done well this year, despite adverse conditions that have held back its competitors. Investors will also be fishing in the trading update for clues as to how the company will perform over the crucial Christmas period. IG Index quotes 246.9p-247p for Kingfisher.