LONDON (Reuters) - Britain's FTSE 100 (.FTSE)
index was seen opening down 5-9 points, or 0.2
percent, on Wednesday, according to financial
bookmakers, slipping back after strong gains on
Tuesday, with investors cautious on eurozone
debt factors ahead of a key government bond
auction in Portugal.
Eyes are on Portugal's first debt auction of the
year -- it was set to tap bond investors for
around 1.5 billion euros -- while Spain will seek
up to 3 billion on Thursday.
Markets were keen to see if the two countries will
be able to fund themselves at a sustainable cost
or be forced to turn to the European Union and
IMF for financial aid.
The British blue-chip index closed 57.73 points,
or 1.0 percent, higher on Tuesday at 6,014.83
supported by a rally from banks helped by
positive broker comment and a brief reprieve on
euro zone debt worries.
This came as Japan's promised to support an
upcoming euro zone bond sale and with talk the
European Central Bank bought debt to help
stabilize markets.
On Wall Street, firmer energy shares and a
positive start to the fourth-quarter earnings
season helped the Dow ( .DJI) and S&P 500
(.SPX) end a three-day losing streak on Tuesday.
Volumes were low for a second day, raising
questions about the sustainability of the longer-
term rally.
Asian shares were flat to slightly higher on
Wednesday on the back of the gains on Wall
Street and solid U.S. earnings reports.
On the economic front, British shop price
inflation edged higher in December, although
heavy discounting by retailers prevented an
even bigger rise, a British Retail Consortium
survey showed on Wednesday.
And the rate at which British recruiters filled
permanent and temporary vacancies eased in
December, although demand for new staff was
strong, a Recruitment and Employment
Confederation survey said on Wednesday.
British trade balance numbers will be released at
2:30 a.m. EST, with a global trade deficit of 8.33
billion pounds, and a non-EU deficit of 4.80
billion forecast.
Across the Atlantic, December U.S. export and
import prices will be released at 6:30 a.m. EST,
together with the latest weekly mortgage index,
although the main focus will be on the
December Federal Budget, due at 1900 GMT.
Ex-dividend factors will clip 0.30 point from the
FTSE 100 index on Wednesday, with British Land
( BLND.L) and Lonmin (LMI.L) both losing their
payout attractions.
Technical analysis for the FTSE 100 index
remains cautious.
"Longer-term traders should pay close attention
to how the FTSE reacts at a pair of bottoms at
5,939.89 and 5,911.02," said James A. Hyerczyk,
an analyst at Autochartist.
"The penetration of both of these bottoms will
signal a bearish shift in investor sentiment. This
will be a strong signal that the index is poised for
an even bigger correction with 5,804.84 to
5,737.43 the preliminary target zone."
Source: Http://us.mobile.reuters.com/article/idUSTRE70B1H620110112?ca=rdt
index was seen opening down 5-9 points, or 0.2
percent, on Wednesday, according to financial
bookmakers, slipping back after strong gains on
Tuesday, with investors cautious on eurozone
debt factors ahead of a key government bond
auction in Portugal.
Eyes are on Portugal's first debt auction of the
year -- it was set to tap bond investors for
around 1.5 billion euros -- while Spain will seek
up to 3 billion on Thursday.
Markets were keen to see if the two countries will
be able to fund themselves at a sustainable cost
or be forced to turn to the European Union and
IMF for financial aid.
The British blue-chip index closed 57.73 points,
or 1.0 percent, higher on Tuesday at 6,014.83
supported by a rally from banks helped by
positive broker comment and a brief reprieve on
euro zone debt worries.
This came as Japan's promised to support an
upcoming euro zone bond sale and with talk the
European Central Bank bought debt to help
stabilize markets.
On Wall Street, firmer energy shares and a
positive start to the fourth-quarter earnings
season helped the Dow ( .DJI) and S&P 500
(.SPX) end a three-day losing streak on Tuesday.
Volumes were low for a second day, raising
questions about the sustainability of the longer-
term rally.
Asian shares were flat to slightly higher on
Wednesday on the back of the gains on Wall
Street and solid U.S. earnings reports.
On the economic front, British shop price
inflation edged higher in December, although
heavy discounting by retailers prevented an
even bigger rise, a British Retail Consortium
survey showed on Wednesday.
And the rate at which British recruiters filled
permanent and temporary vacancies eased in
December, although demand for new staff was
strong, a Recruitment and Employment
Confederation survey said on Wednesday.
British trade balance numbers will be released at
2:30 a.m. EST, with a global trade deficit of 8.33
billion pounds, and a non-EU deficit of 4.80
billion forecast.
Across the Atlantic, December U.S. export and
import prices will be released at 6:30 a.m. EST,
together with the latest weekly mortgage index,
although the main focus will be on the
December Federal Budget, due at 1900 GMT.
Ex-dividend factors will clip 0.30 point from the
FTSE 100 index on Wednesday, with British Land
( BLND.L) and Lonmin (LMI.L) both losing their
payout attractions.
Technical analysis for the FTSE 100 index
remains cautious.
"Longer-term traders should pay close attention
to how the FTSE reacts at a pair of bottoms at
5,939.89 and 5,911.02," said James A. Hyerczyk,
an analyst at Autochartist.
"The penetration of both of these bottoms will
signal a bearish shift in investor sentiment. This
will be a strong signal that the index is poised for
an even bigger correction with 5,804.84 to
5,737.43 the preliminary target zone."
Source: Http://us.mobile.reuters.com/article/idUSTRE70B1H620110112?ca=rdt
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