Low-volume day leaves FTSE rangebound

Heading into the close the FTSE 100 is broadly unchanged as volumes and volatility remain low because of the US holiday.

City of London
Source: Bloomberg

Tesco's struggles continue

It may not be a public holiday in London but it sure feels like it. Traders could not be enticed to take a position as a lack of newsflow combined with the US holiday kept volumes low.

Dave Lewis is the new CEO of Tesco but traders remain unimpressed. Year-to-date the stock is down over 30%, and it is only matter of time before Aldi and Lidl start selling Tesco shares in their bargain bins. 

HSBC was hit by Neil Woodford's offloading of stock, and it can only be worrying if one of the best-known British fund managers has lost faith in the biggest bank in Europe.

Takeover talks circulate around ITV, as a US company has acquired a 6.4% stake in the British broadcaster; 2014 is proving to be the year for M&A activity. 

VIX lower on volume-lite day

The NYSE is closed as it is Labor Day, but the VIX has been open for a portion of the trading day and the market has declined by 0.5% on the session. 

Manufacturing data sends copper lower

Copper was dragged lower by the softer-than-expected manufacturing figures from China. Both the HSBC and Beijing survey's showed the sector barley expanded, a sharp contrast to the 18-month high reading in July.

Gold has been trading within a tight range all day, and the US holiday has taken away the volume and volatility from the metal.

Sterling's selloff ends

This week is the acid test for the euro after manufacturing in the eurozone dropped to a 13-month low, but that didn’t really coax traders off the fence. The problems in the eurozone are not in dispute, the question is whether Mario Draghi will pull the trigger on additional easing.

Sterling has come to the end of its selloff. After it had taken a hammering in recent weeks traders must have felt it was overdone. Any hawkish commentary from Mr Carney this week could spark appetite for sterling. 

 

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.

Find articles by analysts

Een artikel zoeken

Form has failed to submit. Please contact IG directly.

  • Ik wens per e-mail informatie van IG Group bedrijven te ontvangen over handelsideeën en IG's producten en diensten.

Voor meer informatie over hoe wij uw gegevens mogelijk kunnen gebruiken, bekijkt u ons Privacy- en toegangsbeleid en onze privacy website.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.