THE TIPSTER

 
Philip Salter
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EUROPEAN bond yields are rising at an astronomical pace, with Italian bonds tipping over the 7 per cent yield mark yesterday. With yields consistently moving higher, and their inverse relationship with price, many expect further short-term downward movement on European bonds. Capital CFDs quotes the December German bund at €133.92-€133.95.

It’s all about pubs this week, with Marston’s and Greene King reporting. Investors will want to see how this part of the leisure sector has been affected by the recent consumer downturn. Capital CFDs quotes 92.4p-93.1p for Marston’s and 447.4p-449.1p for Greene King.

The Eurozone may be on the brink of collapse, Chinese manufacturing is slowing and the US is threatened with another ratings downgrade, but drill down and there’s a hidden subtext suggesting that economic recovery – especially across the Atlantic – is now finding a foothold. As a result, oil prices are welling up once again and US light crude is toying with the $100/barrel level. IG Markets quotes US light crude January 2012 at $99.40-$99.46.

American traders came back from holidays to find the markets higher than they left them. The S&P500 leapt 36 handles to 1,191 by the time the bell rang on Monday, driven by optimism from refuted rumours of an IMF bailout for Italy and record breaking retail sales in the US over the weekend. However, the S&P 500 is starting to run into some serious resistance levels from 1,200 to 1,210. It might be time to take some profit off the table. Spread Co offers a spread on the US500 of 1,195.5-1,196.0.