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FTSE 100: It would be a foolish investor that sought to stand in the way of a christmas rally

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Category: The FTSE 100 Report

Published on Thursday, 01 December 2011 10:15

When you have the bulls charging there is little to stop them says spread bet company boss Simon Denham.

The FTSE 100 (INDEXFTSE:UKX) is 0.34% higher on the day at 5,524.28 at 9:56 AM.

"Markets remain in bullish mode this morning albeit not as much as yesterday in the early stages of this session.  US indices continued the party for the bulls into the night rising over 4%, which brought the Dow back above the 12,000 level and to levels not seen since the last big rally during the month of October," says Simon Denham at spread bet company Capital Spreads.



Many people are calling the current move a short covering rally, however at this time of year it’ll be a brave investor to stand in the way of a possible Christmas rally warns Denham. 

As we commence the final month of 2011 few will want to go back over what has been a tough year for almost everyone, but when you’ve got the bulls charging little can stop them.

On the corporate front we see:

Rolls-Royce Contract. It has won a contract from Hawaiian Airlines to deliver Trent 700 engines to power 5 Airbus A330 aircraft. The order includes TotalCare long-term services support.

Kingfisher Q3 Results saw retail profits up over 13% to £273m driven by higher sales and continued margin initiatives on sales ahead 4.6% (+1.3% on a lfl basis) to £2.81bn. It noted that 27 of the 29 recently acquired ex-Focus DIY stores are now open and trading well, adding that the short-term outlook in its major markets remains challenging.

GKN Disposal. It has sold its Aerospace Engineering Services Business to QuEST Global for an undisclosed amount.