Has Santa come early for the FTSE
Mike Van Dulken – Head of Research at Accendo Markets speaks to Matt Brown, presenter at Core Finance.
With the move higher for the FTSE since the start of December, Van Dulken says the Santa Rally could happen this year. But the key will be the passing of US tax reform. Which will be the key driver for global equity markets, with the FTSE being dragged higher. Market moves in low volume can be a pure sentiment play and with risks that the tax reforms aren’t passed, then the rally could yet fade.
Looking at two UK specific stocks:
Old Mutual – With the splitting of the business and the sale of Single Strategy business to TA Associates. With a technical breakout to the upside brown and Van Dulken discuss if this will continue or is the move upwards on the basis of good news on a thin day. Furthermore, the recent ANC election and the expectation of a positive result for the South African economy has lead SA focused shares higher.
Land Securities – Bullish Reversal? breaking the bearish channel after a completion of a double bottom. Holding a breakout the stock could migrate towards towards highs in October nearer the 1000p mark. M&A in the sector has helped along with further clarification with Brexit could lead to a sign of a strong reversal.