SHARES in Tullett Prebon plunged 12 per cent last Thursday following the announcement that the discussions with a third party about a possible takeover had been terminated. The shares have fallen well below their 200, 100 and 50-day moving averages and currently trade just above their Fibonacci support, around 306p. A break through 300p could well see a dip to the next support level around 265p. Spread Co offers a spread of 311.6p-312.5p.
The S&P 500 has hit a significant support level around its 200-day moving average following the correction in global indices during the market turbulence in recent weeks. Although markets bounced sharply at the start of this week, Friday's sell-off showed that the shake-out might not be over. Capital Spreads quotes 1,151.0-1,151.4 for the S&P 500 index.
BP has come under mounting pressure from the US authorities since last month’s disaster in the Gulf of Mexico. The oil giant’s share price has dropped around 20 per cent and with crude prices also declining, there could be more losses to come. Liabilities relating to the leak – and the subsequent huge clean-up operation – may weigh on the company for many years to come and could cause a regulatory backlash. The current IG Index price for BP is 537.2p-538.4p.
Gilt futures rose last week, outperforming German bunds, in a positive reaction to the newly-formed Conservative-Liberal Democrat coalition government. Gilt prices were supported by the new government’s pledge to go ahead with £6bn of public spending cuts. Some scepticism had emerged as to whether the cuts are realistic and obtainable, but gilt futures could rise further as the planned cuts become reality. Spreadex has a UK long gilt June contract with a spread of 117.82-117.86.
Banking stocks traded on the back foot after the formation of the new coalition government last week. But Barclays recovered some ground and could rise further in the coming days. ShortsandLongs.com has a rolling spread of 315.2p-316.2p.