The FTSE Tuesday, 3rd January 2006
Last Friday's results:
Open: 5638.
Close: 5618, down 19pts.
Range: 5596 - 5640.
Last 5 trading days: up 31pts.
Last month finished up on 195pts or 3.6%. A touch overly strong for December and we may see a weak rise or a small decline in January.
Dow: 10,717, down 67pts.
Last 5 trading days: down 184pts.
On the month: down 89pts.
News items of note:
Sky news - 'Millions of households are being hit by gas and electricity price rises of as much as 14.5%, which take effect today. The energy watchdog says more increases are likely later in the year. Customers of Scottish and Southern Energy and npower will see their bills go up by 13.5% and 14.5% respectively. And, according to Energywatch, some energy companies are expected to announce further price hikes by the spring. SSE and npower were the last big energy suppliers to announce price increases in 2005. SSE's customers will see their gas bills rise by an average of 13.6% and electricity bills by up to 12%.
The average npower customer, meanwhile, faces paying 14.5% more for gas and 13.6% more for electricity. More than 11 million domestic customers across the two companies will be affected. Energywatch chief executive Allan Asher warned that further price hikes were on the cards for 2006.'
MOSCOW (AP) -- 'Russia's natural gas monopoly halted sales to Ukraine in a price dispute Sunday and began reducing pressure in transmission lines that also carry substantial supplies to western Europe. Ukraine's natural gas company Naftogaz acknowledged the reduction by Russia's Gazprom. "Gas is not flowing at all through some transit routes, which can lead to a fall in pressure in all the pipelines and limit the overall supply of gas to Ukraine and Europe," said Naftogaz spokesman Eduard Zaniuk.'
The News items above are not related. Even so, it wouldn't surprise me if stocks in UK related gas companies didn't rise in the coming week.
LONDON (Reuters) - 'Interest rates in the United States and the euro zone are set to rise twice during 2006, as the Fed brings its rate cycle to an end and the European Central Bank tightens cautiously for fear of choking the economy. A December 14-20 Reuters poll of 36 bond strategists also showed the Bank of Japan raising its key rate fractionally above current levels of virtually zero late next year, and forecast one rate cut in Britain by the end of June. Median forecasts showed U.S. interest rates peaking at 4.75 percent in the second quarter, after a steady tightening cycle which has so far added 325 basis points to the cost of borrowing from 1.00 percent in June 2004.'
Charts, and nothing but the charts: Friday's stated a 55% chance of a rise. Tuesday's, no clear indication but favours a rise before a fall.
Companies reporting:
None
Economic Data:
None
The FTSE tomorrow based on present news and data: the DOW ended on a moderate negative, but this won't be a factor to the FTSE's early morning movement; no economic or company results; no clear indication from charts; the market will be driven by company related news tomorrow.
Early gut feeling: I fancy a rise.
Will I bet? I'm up with the birds. There’s no rush, I'll wait until the FTSE shows which hat it will wear.
If you are betting: make your own decision, watch the markets open and do read the news for clues as to which way the FTSE may go.
Yours
UK
