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
✖

UBS at 15 month high BP increases its dividend

Article By: ,  Senior Market Analyst
October 30, 2012 11:29 AM

European markets rose steadily in early trading on Tuesday, led by UBS after it confirmed its massive cost cutting plans and as BP raised its dividend. However volumes are expected to stay thin and the markets fairly range bound as the massive storm hitting the US keeps Wall Street shut for another session. Investors will be watching closely to see if activity will be resumed tomorrow, the final day of the trading month.

UBS has announced that it is cutting 10,000 jobs worldwide, or 16% of its workforce over the next three years. This comes as the Swiss Bank posted larger than expected losses; however the plan unveiled to wind down its fixed income business and focus on its wealth management arm has pleased the market considerably. UBS has gained over 14% so far this week and is currently trading at a 15-month high. This transformation for the firm is expected to see overall earnings being less volatile, more consistent and of higher quality.

Here in the UK, BP reported forecast beating third quarter results, with a quarter on quarter increase in underlying replacement cost profit of $5.17 billion, up from $3.69 billion in the preceding quarter but down from the corresponding period of 2011. The quarterly dividend has also been hiked to 9 cents, up from 8 cents. This will help the oil giant to return to favour with pension fund managers after the troubles of the Gulf of Mexico oil disaster early last year. BP is currently leading the FTSE gainer board, up 5.2% by mid morning.

Economic data from Europe has also been keeping the markets entertained whilst Wall Street remains closed. Earlier this morning, Spanish GDP came in at -0.3% month on month, showing Spain’s economy is now 1.6% smaller than this time last year.

This news comes as the markets were digesting Spain’s massive drop in retail sales of 10.6% year on year in September and their record high unemployment at 25%. The troubled nation’s output has been shrinking for over 12 months and with the austerity measure yet to really kick in, the outlook for Spain is extremely poor. Despite this, Prime Minister Rajoy in a conference yesterday still denied the need for a bailout. The markets have been very patient with Spain but bond yields are starting to rise again so it looks like time might be starting to run out.

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