Dow Jones Index Hits New All-Time High As Fed Prepares to Hike

Another day and another new all-time high for the Dow Jones industrial average index. It seems like groundhog day with this strap line, but here it goes again. The DJIA was buoyed by tech stocks rebounding in tremendous fashion, with the Nasdaq 100 also pushing higher after a few days of the wobbles.

Movers within the index were 3M and Goldman Sachs, posting the most gains. But technology stocks were back, and with a bang. As out-performers on the year so far, it was no surprise to see some relief as the S&P information technology sector has already gained 17.6 percent this year to date.

But tomorrow is the big day. The Federal Reserve will make their quarterly interest rate announcement tomorrow, with expectation that the central bank is going to raise interest rates by a quarter point.

How this will affect the Dow Jones index is hard to predict. Some commentators are saying the Dow Jones has already priced in a rate hike, some are saying brace for a sell on “event” type move. But all we can do is “wait and see”.

It would be foolish not to expect some sort of correction in value of the blue chip stocks in the Dow Jones index. If you look at the chart below, you would have to say it’s gone way (way) higher than anyone could have predicted before President Trump won the election. That doesn’t mean it can’t go higher, but how much?

In the past, shocks from interest rate decisions have been one of the main catalysts for a surge in the opposite direction for stocks. When interest rates are hiked by a higher percentage than what was expected it can cause a sell off.

But right now the Federal Reserve are playing it cool and calm. No shocks, no large jumps. Just sneak those rates up as quarter points, in a gradual and timely fashion. Maybe this is allowing investors to digest the changes, and continue to hold a bullish stance? Well, no one else seems to have a firm answer as to why the markets are going so high. It is as good as any other explanation.

Until next time…

from http://www.livecharts.co.uk/livewire/2017/06/dow-jones-index-hits-new-all-time-high-as-fed-prepares-to-hike/

FTSE 100 Holds Firm as Election Ends With Hung Parliament

A hung parliament was declared in the U.K. general election which resulted in some wild swings overnight for the FTSE 100.

After ending slightly down on Thursday, the main share index was priced by spread betting companies as down 100 points as the exit polls were announced.

During the early hours, one by one the results came in and the overnight price gradually began to recover. When it became apparent that the Conservative party would continue to hold the most seats and have the ability to form a coalition Government, the FTSE 100 price jumped when the market opened and headed toward the weeks highs.

And there it stayed, pretty much.

For the rest of the trading day the index held tight in a 50 point range from 7480 to 7530, give or take a few points.

Relief all round for investors who would have taken a Corbyn victory as a signal to sell, with extreme uncertainty in the city about how his Labour Government and their policies would affect business growth.

As for individual sectors, the majority were buoyed by the result and finished positive. The main laggards were general retailers and food producers, as the value of sterling declined – pointing to imports become more expensive.

The British Pound fell 300 pips overnight when exit polls were announced but managed to recover a small piece of ground during the morning session in Europe.

Further pressure is expected for sterling over the coming days. Once again uncertain times in the U.K. are on the horizon, with Brexit talks about to begin and no Government yet in place to move the process forward.

One thing is for sure- it’s never dull for long on the UK markets!

from http://www.livecharts.co.uk/livewire/2017/06/ftse-100-holds-firm-as-election-ends-with-hung-parliament/

Dalradian Resources' shares rise after positive Curraghinalt update

Shares in Dalradian Resources rose more than 4% as it said drilling continued to reveal the high-grade nature of the Curraghinalt gold deposit in Northern Ireland.

from LiveCharts News - http://www.livecharts.co.uk/share_prices/news_article.php?id=26003503

Landore widens loss, eyes more equity raises to carry out development plans

Shares in Landore Resources Ltd are down almost 5% after its full-year pre-tax loss widened, and said it would continue to raise additional equity as need to carry out its development plans.

from LiveCharts News - http://www.livecharts.co.uk/share_prices/news_article.php?id=26002514

Lamprell surges on news of Saudi Aramco JV

Shares in Lamprell surged on Wednesday as the UAE-based oil rig maker said it will form part of a joint venture led by Saudi Aramco to establish, develop and operate a maritime yard for the construction of offshore drilling rigs and vessels on the East Coast of Saudi Arabia.

from LiveCharts News - http://www.livecharts.co.uk/share_prices/news_article.php?id=26002110

Vast Resources' shares rise on approval for $4m disposal

Shares in Vast Resources improved almost 7% after the Reserve Bank of Zimbabwe allowed the company to dispose of a non-controlling interest in its Pickstone-Peerless Gold Mine and Giant Gold Project in that country.

from LiveCharts News - http://www.livecharts.co.uk/share_prices/news_article.php?id=25998433

Science in Sport confirms patent for WHEY20

Shares in Science in Sport are up almost 3% after it confirmed being granted a patent for its protein gel WHEY20.

from LiveCharts News - http://www.livecharts.co.uk/share_prices/news_article.php?id=25998227