This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
9 October 2015
The UK 100 is on course for its best week in almost 4 years (+5%) having rebounded 10% from September lows and there’s potential for a return to April’s 7000. After the sharp August sell-off and the index trading with a ‘5’ in front for 6 weeks, to be able to discuss levels with a ‘6’ and ‘7’ is exciting. And the surge in client interest is logical after this week’s UK Index breakout above 6300 September highs. Those bullish investment bank calls we highlighted 4-6 weeks ago when markets were low (Morgan Stanley ‘Full House’ Buy Alert) proved particularly beneficial, and well ahead of the curve, demonstrating the service value offered by Accendo Markets. Major household names like BP and Sainsbury have risen by over 20% in 2 weeks. Mining giants like Rio Tinto and Anglo American are picking up pace, while battered Glencore has staged a remarkable recovery; up over 100% from 28 Sept all-time lows of just 67p.
As we move into the final part of the year, traders are even more confident in low interest rates until well into next year. This should buoy risk appetite and could keep markets trending higher with cheap money an abundance of liquidity helping consumers, businesses, risk appetite and thus equities. For those worried they have missed the boat we reiterate it’s not a case of one chance to get in or out. There are plenty of stocks only just getting off multi-year lows and markets offers myriad opportunities day in day out. Strong moves are likely as we progress into Q3 reporting season and companies update on performance and outlook. Better than expected and they could rally; worse and they could plunge. Opportunities to both buy and sell, long and short. US names are only just getting started with the key Banks slated for updates next week. Should all be rosy in banking land, what will be the knock-on be for UK-listed Barclays, Lloyds and RBS? To stay abreast of the financial markets and sample our award-winning service, register for our free research right here, right now.
Adam Vettese, Trader
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