This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Traders might have thought that with both the US and Canada off for Labor Day we might have seen a quieter start to September. However this is not the case, as the FTSE 100, and all other major European markets have started the day off in a jolly mood. The FTSE has been able to digest the return to growth of China’s manufacturing PMI figures after three months of decline, and commodity stocks have rebounded on the back of this. Although the underlying spot commodity prices have not exploded, mining stocks look to be factoring in a more stable demand going forward.
The procrastination over the separation of Verizon and Vodafone, the third biggest riser in the FTSE 100 so far today, appears to be coming to a conclusion, and markets are expecting confirmation of Verizon’s £84 billion divorce bill any day. Shareholders of the UK-quoted telecoms company will be hoping to see a large part of that cash redistributed to them. With the US being its main profit region, Vodafone will need to wisely invest in order to maintain the profit they have been used to running.