CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Tesco shares fall 2 despite FTSE rally as traders eye US jobs data

Article By: ,  Financial Analyst
October 5, 2012 12:29 PM

Tesco shares hit their lowest levels since mid-July this morning, underperforming a general rise in demand for large cap London listed shares that helped the FTSE 100 to rally 0.46% ahead of the release of US jobs data for September.

By 11.30am, the FTSE 100 had rallied 26 points, tracking similar gains in European trade that helped the DAX and CAC both to enjoy gains of  05% and 0.8% respectively.

Tesco shares hit new two and a half month low

Tesco’s shares price has continued to slump after reporting in line half year figures earlier this week. Britain’s largest supermarket has seen its shares price fall back below the 312p level today, its lowest levels since mid July and marking a slump of 8% in the last three trading sessions. Investors are waiting to see Tesco turn the corner after issuing a profit warning in January, and the strength of Sainsbury’s performance in the last two quarters remains a high area of concern for Tesco’s shareholders. This concern is being represented in their share price, with Sainsbury’s rallying 0.6% today, and indeed 2% in the last three trading days compared to Tesco’s slump.

US non-farm payrolls in focus

As with every first Friday of a new trading month, we see the traditional US labour market report where investors are mildly confident that US jobs could see a decent rise from a disappointing report in August. US non-farm payrolls is expected to grow to 113,000 jobs, with private payrolls hitting 130,000 but the US unemployment rate is also expected to nudge higher to 8.2%.

With the Fed already showing their hand in terms of open ended asset purchases of $40bn per month until the US unemployment rate falls to a subjectively comfortable level, we could continue to see a double positive or double negative for the US dollar in reaction to today’s jobs figures. A strong figure could be double positive in that it may shorten the open endedness of the Fed’s actions and increases positive sentiment around the US economy, whilst a weaker reading could do the opposite.

So all eyes towards the measure at 1.30pm.

Follow me on Twitter by searching for @Josh_Cityindex for instant news as and when the US labour data is released.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024