News

Blue Index News and Press Releases. Please visit this page often for regular updates regarding Blue Index as an organisation.

Building Above 4,000

The recent price action of the FTSE 100 has consisted of surges from below the 4,000, but on each occasion so far the moves higher have proved to be unsustainable. While it may not be the case, the impression one gets is that there is selling into strength going on, perhaps from distresses funds and institutions.

No Extra Funding Required

The FTSE 100 makes a sharp jump through 4,000 again on the open, but this has already started to fade. The reason for the initial enthusiasm were reassurances from leading insurers Legal & General (LGEN), Prudential (PRU) and Old Mutual that they are not in need of additional funding. Of course, this is what we heard before with the banking sector. But so far the markets look as though they are taking these companies at their word, with only the Pru slightly down on the day in terms of share price.

Weekly Traders CFD Diary

October 10th: The Banks Are Saved Courtesy of the generosity of the Great British taxpayer HBOS (HBOS) and RBS (RBS) have been saved from a grisly fate. They avoid going to Credit Crunch heaven via a £37bn cash injection. Of this £20bn goes to RBS, the canny people who bought ABN Amro at the top of the market, with £5.5bn going to Lloyds TSB (LLOY), and £11.5bn to HBOS. HBOS is now being offered only 0.6 of a Lloyds share as part of a recommended lower offer. The only mystery is why Lloyds share holders are paying anything for HBOS, although being paid to do so by the UK taxpayer is one possible explanation?

Global Recession Doom & Gloom

We returned to the pre part nationalisation sentiment of last week with 500 point declines for the Dow overnight, and at one point this morning, the FTSE 100 down as much as 10% in less than 24 hours. The problem now for bulls of the stock market is that they have little more than interest rate cuts to look forward to now, something which after all, did not help Japan much even at 0%.