The headline index is tipped to open rather tepidly today, according to financial websites, with cautious investors waiting to see if Greece can salvage a last ditch deal and following a slightly downbeat performance on Wall St overnight, while Asian markets were modestly higher.
US & ASIA
In the US last night, the Dow fell 37 points to 18,126, the Nasdaq lost 9 points at 5,098 and the S&P 500 edged 2 points lower to close at 2,121.
In Asia today, the Nikkei was recently up 33 points at 20,584 and the Hang Seng had gained 91 points at 27,545.
WTI crude oil traded at $58.31 a barrel and Brent at $63.09.
Gold settled at $1,190.3 an ounce.
In the corporate diary today, interim results are expected from Ojsc Phosagro and Biofrontera and final results are scheduled to be released by Optibiotix Health.
The S&P 500 Index rebounded on Wednesday after sharp losses on Tuesday saw the CBOE Volatility Index (VIX) jump 16%.
In the end, all three benchmark indexes ended up closing higher, with the Dow Jones Industrial Average up by 0.67%, the Nasdaq up by 1.47%, and the S&P 500 up by 0.92%.
It was a day of steady gains for stocks as the S&P 500 moved consistently higher from Tuesday’s low, though the index did not manage to recover Tuesday’s losses completely.
Return to optimism
A number of factors helped push stocks higher on Wednesday.
First, there was a positive session in Asia which spilled over into European and American markets.The Shanghai Composite Index moved within a whisker of the 5000 level, as investors speculated over continued interest rate cuts from the Chinese central bank.
Second, there was renewed optimism in Europe as traders bet on a new agreement regarding the Greek debt situation. Greek policymakers were set to meet with the IMF late on Wednesday to thrash out a new deal ahead of $1.74 billion worth of scheduled payments.
Thirdly, continued activity in the mergers and acquisitions space has helped boost the attractiveness of riskier assets. TimeWarner Inc. was approached by Charter Communications on Tuesday in a $50+ billion deal and on Wednesday, there were reports of a buyout of Broadcom Inc. by Avago Technologies. If it were to go ahead, the deal would be the biggest ever in the semiconductor space. Shares in Broadcom Corp. rallied 21% as a result on Wednesday.
Technicals & Outlook
The S&P 500 advanced on Wednesday and closed right on the first resistance level. However, as mentioned the market was unable to recover all of Tuesday’s steep losses.
Over the next few days, we note that most technical indicators are now bearish, so we are looking to sell in the 2,120 - 2,134 range, for a potential move to 2,090. We are also bearish over the next few weeks.
Start making regular profits from the FTSE 100, S&P 500, EUR/USD and gold, subscribe to Better Trader Premium:
The headline index is tipped to open largely unchanged this morning, according to financial websites, following yesterday's runaway session and with Greece's finances and G7 talks in focus today.
Wall St made solid gains overnight, while Asian bourses were mixed in early trading.
US & ASIA
In the US last night, the Dow gained 121 points at 18,163, the Nasdaq added 74 points at 5,107 and the S&P 500 climbed 19 points to 2,123.
In Asia today, the Nikkei was recently up 100 points at 20,573, while the Hang Seng had fallen 400 points at 27,677.
WTI crude oil traded at $57.77 a barrel and Brent at $62.59.
Gold settled at $1,187.9 an ounce.
In the corporate diary today, trading statements are due from IG Group and Kingfisher, interim results are expected from Alpha Bank, Public Power Corp and Signet Jewelers and final results are scheduled to be released by B&M European Value Retail
The headline index is tipped to open lower this morning, according to financial websites, as trading resumes following the bank holiday weekend and despite a decent session overnight in Asia, as Greece scrambles to find a last ditch solution to its debt crisis...
US & ASIA
With a number of overseas markets closed yesterday, the US Dow index ended its last trading session 54 points lower at 18,232, while the Nasdaq lost 2 points at 5,089 and the S&P 500 slipped 5 points to 2,126.
In Asia today, the Nikkei was recently up 34 points at 20,448 and the Hang Seng had gained 343 points at 28,336.
WTI crude oil traded at $59.79 a barrel and Brent at $65.51.