Traders gear up for Christmas rally

Despite the absence of the ever optimistic US traders yesterday the FTSE still managed to edge up 18 points, and over in Europe the DAX continued its aggressive climb setting new records. 

This morning’s disappointing German retail sales have done nothing to calm the enthusiasm. The UK has posted worse-than-expected M4 money supply figures and soft monthly individual lending figures too, although mortgage approvals have come in as expected. 

Yesterday’s thin markets have continued today and the big movers on the FTSE have done so without really being driven by sentiment. JD Sports has enjoyed the benefits of the recession and the sliding standards as they feel confident of meeting market expectations. Hammerson has raised $443 million in a private placing, with US investors eager to gain exposure to the UK property markets. Premier Oil is also looking to raise funds aiming to place £100 million of new bonds, and there has been a management shake-up at Speedy Hire as the CEO is stepping down to be replaced by the current CFO.

Black Friday in America will no doubt see shops packed to the rafters as the US spends following the Thanksgiving festivities. This barometer of retail spending power will be closely monitored as analysts try to guage the likely spend over the month of December. Markets will be up and running today but in reality many will use this as an excuse to take a long weekend. 

Ahead of the open, we expect the Dow Jones to open seven points higher at 16,104.

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa 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. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.

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