Monday, January 10

Stocks Shares Sharply Lower

Stocks and Shares - Stock Markets Start Week Weak

Yesterday Oscar Carboni, despite being bullish for stocks and shares generally for 2011 - see stocks and shares 2011, said in his latest video that we may see a short retracement (1 or 2 days) in the stock markets. So far he is right, with the DOW down 85 Nasdaq down 15 and the SnP down 8.

The fall in US stocks is broad based - with 9 out of 10 sectors down. Only industrials are very slightly higher.

The dollar has been dragged down recently which has supported commodities, with the CRB Commodity Index up a solid 0.6%.

In London the FTSE is down around 30 points

Mining stocks are pulling the FTSE100 index down, but oil stocks are doing quite well.

Declining copper imports into China sent copper prices lower. Kazakhmys, is one of the heaviest fallers. ENRC, Xstrata and Vedanta likewise, silver miner Fresnillo is sharply lower again - it has not been a good 2011 so far for Fresnillo.

Oil prices are rising again, with Heritage Oil and Tullow following suit. Shares in BP fell after it shut down a major oil pipeline in Alaska as the result of a leak. It's worth noting however that BP has been above its 200 day moving average since December, which is a good sign for its recovery.

Smith & Nephew rose over 10% after reports it turned down a bid approach from Johnson & Johnson before Christmas. J&J have offered apparently 750p per share, and are contemplating an increased offer.

Housebuilder Persimmon says results will be at the top end of expectations, with a “significant” increase in profit before tax, the figures are towards the upper end of analysts’ forecasts of £75m to £96m. +

Pharmaceuticals firm ProStrakan is another bid target and touched its 12-month highs after gaining approval from US authorities for cancer pain drug Abstral.

Westminster Group (Security, defence and fire protection provider) has won a new contract to supply a sophisticated countermeasures system to a government in the Asia-pacific region - valued at around $645,000.

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