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.
At the end of the trading day the FTSE 100 is positive, up around 29 points at 6764. A big mover has been HSBC which was up around 2.5% as third-quarter profits came in at $4.5 billion – 30% up from the same period a year ago. The share price performance bucked the trend for the rest of the UK banking sector, most of which ended the day in the negative. Despite today’s boost for HSBC, sentiment towards the banks in general has waned somewhat over the last few months, and it seems unlikely that these numbers will be seen as a sea-change in fortunes for banks as a whole – at least in the short term.
Wider market sentiment, on the other hand, definitely seems to have improved in recent days. The FTSE 100 is within 100 points or so of this year’s high, set in May. We are all aware of how Christmas comes earlier every year, so maybe it’s not too early to start thinking about the fabled Santa rally. With investors still apparently optimistic for on the hopes of blue chip shares it doesn’t seem beyond the bounds of possibility that we could see the FTSE set fresh highs for the year, particularly if the US and Germany’s DAX remain strong. A push to 7,000 might be a little too aggressive in the weeks ahead, but for now at least traders and investors alike remain inclined to treat weakness as a buying opportunity rather than the first steps towards a bigger correction.
Later this week Twitter debuts on the New York Stock Exchange. In a surprise move today the company revised up its IPO price, boosting its opening share price range to the $23/$25 mark. This puts its market cap at around $13.5 billion on day one – still well below the $24 billion market cap that IG clients think it will start at, according to our grey market.