This morning, I felt uncomfortable about the opening of European markets in the knowledge that the inclement weather conditions on the US Eastern seaboard would definitely curtail activity quite dramatically, particularly as the storm took place over the weekend preventing practical contingency plans. New York’s input is fundamental in providing clear guidance
The FTSE started up about 17 points at 5917, but as soon as oil came off its better levels of $32.60 down to $31.20 the FTSE quickly saw the usual suspects surrender value – oils down 2% and mining stocks easier by 2.5%. The FTSE quickly went into reverse losing 35 points to 5682. BP was 2.5% down and has now settled down 1.8% with Shell easier by 0.9% having been up 0.5% for a brief period. On average miners were down 1% with BHP and Rio off 1.25% and 2% respectively. Dixons Carphone was up 0.5% ahead of figures later in the week. Kingfisher had a ‘mare.’ Investors were underwhelmed with their plans which included a £600 million share ‘buy back’ – down 8%. Petra Diamonds were up 1.5% having been up 4% after numbers today. Tesco eased by 0.25%. Lloyds Banking Group improved from its initial 3% markdown to being steady at -2%. The two somewhat neutral bright sparks were ARM Holdings – +1.5% and Randgold +1.3%.
At 3.00pm the FTSE 100 was down 32 points at 5687. The Street of Dreams shed a bit of value with the DOW being down 83 points at the time of writing. I have a severe dose of the collywobbles in my stomach. I feel as if we might have another movement – downwards this week. Not carnage, but the lack of positive news flow is hardly conducive for the ‘bulls’ to come out to play!