SOVEREIGN debt troubles had created plenty of turmoil in the global markets, but over the past few days, equity markets have been discounting the negative news flow to stage a bit of a recovery. Traders should be aware that the strength in European equities is often preceded by a good performance in the Asian markets the night before. The Japanese Nikkei 225 is still lagging other Asian markets and could well be a buying opportunity. Capital Spreads is quoting a price of 10,320-10,340 for its March contract.
Traders looking for a slightly more exotic index to trade at the moment need look no further than India’s Nifty 50. The index made a foray back below the 4,700 mark earlier this month but with confidence in the economic outlook building among traders, can Dalal Street now drive it back towards those all-time highs above 6,000? The country is expected to report GDP growth of more than 7 per cent this year, so the Nifty 50 could well prove to be a market with more upside than most. The current IG Index price on the India 50 is 4,896-4,909.
Back in the UK, there are a couple of shares that have caught the Tipster’s eye. Oil giant BP – tipped last week – still remains a firm favourite. Had you bought last week as tipped, you would have just received the 8.5p dividend. It’s worth holding on to your position or jumping into the stock now with a target of 600p and above. WorldSpreads is offering a spread on on the oil major of 572p-573.4p.
Pest control provider Rentokil has seen its shares rise 20 per cent since December 2009 despite the firm reporting a fall in revenue for the nine months to September. The increase in the share price is in anticipation of a new marketing and sales strategy to improve growth. As a result, tomorrow’s full year results may not spark a fall in the share price, even if the figures do make for less-than-positive reading. Spreadex has a March-based spread of 118.0p-118.9p.
Positive results are expected today from B&Q owner Kingfisher, which saw its share price jump more than 3.5 per cent yesterday. The company has fared well during the downturn, although its share price at 214p is some way below its year-high of 249.1p set in November. If figures are similar to December’s update – when B&Q reported a 23 per cent increase in retail profits – then spread betters could be in for further gains. ShortsandLongs.com has a rolling spread of 213.8p-214.7p.
When it comes to precious metals, much of the focus has understandably been on gold. But silver has lagged behind gold’s bullish move over the past couple of weeks and it could start to catch up, with traders targeting above $18.50. WorldSpreads is offering $16.20-$16.24.