THE TIPSTER
THE Nikkei was sold off a little on Monday following some disappointing consumer confidence data. The country is still struggling back to normality following the terrible earthquake, but for contrarian investors, Japanese stocks could look good value. Capital CFDs quotes a price of 9,540-9,550 for the Nikkei 225.
Mothercare reports its earnings on Wednesday. Its shares are 31 per cent down on the year, but 12.5 per cent off the lows set in mid-April. Retail stocks continue to come under pressure, but should Mothercare disappoint and dip to the 380-400p support level, CFD traders could think about taking a longer term view. Spread Co quotes a spread on Mothercare of 421.9p-423.6p
The anticipated resolution of the British Airways dispute with its cabin crew combined with the falling price of oil and talk of industrial relations issues with pilots at competitor Virgin must have seemed like a welcome break for the recently listed BA-Iberia airline group. Furthermore, with a large chunk of the group’s outgoings being denominated in euros, anything that precipitates further weakness here has the potential to lend a degree of support. There is however the rather significant question mark lingering over the outlook for the global economic recovery and any further jitters here will end up weighing once more on companies like International Consolidated Airlines Group. IG Markets current price on ICAG is 245.2p-245.4p
This morning’s first quarter Marks and Spencer trading update is likely to provide a key barometer towards this week’s UK retail sales figures, though it could also see an unexpected boost from the Royal Wedding. CMC Markets quotes a spread of 396.75p-398.45p
Barclays shares performed a death cross on 3 May when the 50-day moving average cut through the 200-day moving average to the downside, and since then they have fallen 13p to 273p. If Barclays shares play out the same pattern going back two years again, then we should see them continue to fall until 255p-260p before rebounding back towards 300p. If you are tempted to buy Barclays, it might be worth waiting with a buy order around 260p. Spread Co quotes 273.0p–273.6p on Barclays.