This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
In the week ahead we have a major US aluminium company and a host of US Banks kicking off earning season stateside. The question is, will these quarterly results have a knock-on for UK shares as they done so many times previously. The list of companies reporting include…..
Alcoa (AA) is notorious for setting the tone for mining stocks across the world with its good or bad results providing a valuable hint as to how the rest of the sector may have done. While Alcoa kicks things off late on Monday, it then passes the baton to US banking majors including Bank of America, Citigroup and JPMorgan (Goldman Sachs and Morgan Stanley report the week after) and investors are impatient to know how they fared in the first quarter. And the results traditionally generate bigger than normal share price moves on both sides of the Atlantic. I remember back to when JPMorgan reported strong numbers and that afternoon Barclays shares rallied 11% in response. With some of the UK banks shares trading 4 year lows, any whisper of a strong banking quarter and a solid outlook could see these shares find buyers bidding them up towards the bullish target prices that many brokers have in place right now.
On another note, with the UK Index ranging 6100 – 6200 the past month or so as Mike points out …. It has presented some nice trading ranges for some shares that clients have been taking advantage of. For example Anglo American. Go grab a chart over a month period and you’ll see the shares range 500p – 550p over 4 times. Potentially netting clients 10% each time, proving the trend can indeed be your friend. Likewise BP has shown a range 330 – 360p, again offering possible moves of 8%+ each time? … Surely you cannot be happy missing out on these ranges?
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James Abbott, Senior Trader, 8 April
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