FTSE edges higher but caution remains

In mid-morning trading the FTSE 100 is up two points, at 6648, as the protests in Hong Kong continue to hang over the market.

City of London
Source: Bloomberg

In London, traders are on tenterhooks as all eyes are firmly on the Far East. The London market is holding up relatively well considering stocks in Hong Kong lost over 1% as protesters continue to clash with riot police, while HSBC and Standard Chartered are still suffering because of the unrest.

Royal Bank of Scotland announced that its loan impairments would be significantly lower than estimated, and this could be the turning point where toxic assets turn good.

Interdealer broker ICAP has lost close to 2% in early trading, as declining volatility and a risk adverse stance from big banks has hit revenues.

Wolseley shares are trading higher after the building materials supplier posted a  healthy set of figures. Its profits jumped by 52%, the dividend has been increased and the icing on the cake was the £250 million share buyback scheme.

We have heard of companies blaming poor revenue on bad weather, now Next is blaming soft sales on good weather, as the stock is down 4%.

In the US, we are expecting the Dow Jones to open 20 points higher at 17,091, as US index futures have pulled back some of last night’s losses. 

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.