Santa rally comes bouncing back

Equity markets add to this week’s gains.

Source: Bloomberg

Better late than never for the FTSE, which has spent this week rallying and in the last full trading session of the year, the bulls have had the upper hand.

With base metals and energy prices both showing resilience, the FTSE, heavily weighted in this area, has enjoyed solid support.

The title for the worst performing FTSE stock in 2015 could go all the way to the wire with Anglo American down 73%, just outdoing Glencore’s 69.5% collapse over the year.

At the top of the tree, DCC is the star performer, up over 59% on the year, even with an uninspiring December performance.

Panmure Gordon’s stockings are unlikely to be filled with much more than coal this year, following this morning’s trading update and the unwelcome news that annual losses will fall somewhere between £4 and £4.5 million.

Meanwhile there are indications that it’s game over for Game Digital, as the company’s share price crashes below its IPO price and sets records for all the wrong reasons.

This morning’s collapse in French consumer spending follows hot on the heels of warnings about festive season sales in the UK. Adding to the cautionary tones has been the falling UK GDP figures coming in at 0.4%, short of the 0.5% market expectations.

Although no reason for the Bank of England to be unduly worried, it does rather reduce the chances of Mark Carney following Janet Yellen's lead next year in raising rates. Ahead of the open we expect the Dow Jones to start 67 points higher, at 17,484.


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.