UK banking stocks rebound strongly

Monday, October 06, 2014

European equity markets rebounded strongly today, as risk appetite increased. The CAC, DAX, IBEX and London equity benchmark climbed higher between 0.2% and 0.75%, tracking strong gains in the Asian equity markets. In the US, the Dow Jones gave back earlier gains and consolidated within the recent range around 17,000 points.

UK banks led gains in London as market sentiment improved after tensions in Hong Kong eased. Barclays, Standard Chartered, RBS and HSBC climbed higher between 0.3% and 3.4%, while insurance companies also posted strong gains.

Tesco surged almost 3% in today’s trading session following an announcement of the appointment of two non-executive directors to strengthen its boardroom after its recent accounting issue.   

On the macroeconomic front, we received fairly mixed economic data from Eurozone. Germany’s factory orders plunged by 5.7% in August, against analysts’ expectations of a 2.5% drop, while Markit retail PMI fell to 47.1 in September compared to 49.4 in August. The Eurozone’s Markit retail PMI fell to 44.8 in September from 45.8 in August, while Sentix investor confidence declined to reach -13.7 in October missing expectations of -11.0.

Mining stocks rose following a strong rebound in precious and base metal prices. Antofagasta, Fresnillo, Anglo American, Glencore and BHP Billiton gained between 1.8% and 3.6%, while Gold rebounded from recent low levels and climbed above 1,200, adding more than 0.8% on the day. Silver followed the uptrend and rose more than 1.55 to breach above the key 17.00 level. 

Gold Spot

XAU Curncy (Gold Spot   $_Oz )  D 2014-10-06 16-44-34

Silver Spot

XAG Curncy (Silver Spot  $_Oz )  2014-10-06 16-44-58

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