SO FAR, so good for the British retailers, it would seem. The likes of Marks&Spencer, Next and J Sainsbury have all released better-than-expected third quarter figures, and the latter is once again looking like an attractive proposition. Although lower food inflation might be expected to hit bumper sale figures, both the supermarket and its rival Tesco have shown that they are still recession-proof so there could be more upside to come. Over the last couple of months we have also seen the share price bounce off of the support level at 306.5p, and with the added prospect of the Qatar Investment Group looking to increase their stake traders still seem very keen on the supermarket chain. CMC Markets is quoting 339.70p-340.30p.
The strong results in the retail sector over the past couple of weeks may also prove beneficial for luxury retailer Burberry, which posts its interim figures on Tuesday. Its shares could provide a good buying opportunity, particularly since at this time of year retail stocks usually do well. Capital Spreads quotes 598.7p-600.8p.
Also due out next week are full-year results from budget airline easyJet. EasyJet shares saw a dramatic rise in value from 300p in July to above 400p in October before falling back to just above 350p. Last week the stock recovered to trade above 380p on Friday, but how will Tuesday’s full-year figures affect the price?
The economic downturn and a fall in the number of people flying plus a hike in air passenger duty has led analysts to predict a fall in profits, so spread betters have again been shorting. Spreadex has a December-based contract with a spread of 380.4p-384.9p.
Price comparison website Moneysupermarket.com has been performing well during the downturn with people continuing to flock to the site as they look to get the best value for their cash during the lean times. With the firm debt-free and with analysts expecting revenues to be up on the first-half of the year when the company submits a trading update today, it may be poised to build on gains already posted this year. ShortsandLongs.com has a rolling spread of 79.2p-80.1p.
Crude oil might have broken through the $80 a barrel mark but it didn’t stay above that level for long. It’s already back down to $76 and oil product stocks remain well above “normal” levels. Falling demand for these oil products, which are widely used in industrial processes, highlights the weakness of the current recovery, with the inventory cycle driving GDP improvements.
This product overhang should put downward pressure on crude oil prices in the coming weeks, as should weak natural gas prices because cheaper natural gas prices reduce demand for oil substitutes such as heating oil. IG Index is quoting a December-based spread on US light crude of $76.31-$76.40 per barrel.