Reuters: Hot Stocks: Britain's FTSE 100 recovers from four-week low

Reuters: Hot Stocks Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

Britain's FTSE 100 recovers from four-week low Jun 4th 2013, 11:33 Tue Jun 4, 2013 7:33am EDT * FTSE 100 index up 0.6 percent * Index finds support at 40-day moving average * Wolseley falls after quarterly results By Toni Vorobyova LONDON, June 4 (Reuters) - Britain's top share index recovered from a four-week low on Tuesday, bouncing from technical support levels and cheered by expectations that weak U.S. economic data will keep stimulus efforts by the Federal Reserve in place for longer. The U.S. manufacturing sector shrank unexpectedly last month, figures showed on Monday. After an initial sell-off on concern over future demand from the world's biggest economy, sentiment towards equities shifted overnight, with some investors taking the view that the economic weakness is likely to discourage the Fed from ending quantitative easing early. The FTSE 100 index of British blue-chip companies, which derive around a quarter of their earnings from the United States, was up 41.97 points, or 0.6 percent, at 6,567.09 by 1101 GMT. "The economic data we've had support that QE will continue... With Wall Street holding its nerve yesterday, and with (U.S.) futures looking OK, there isn't really any selling," said Zeg Choudhry, head of equity trading at Northland Capital Partners. The FTSE 100 had fallen more than 5 percent in the previous 10 sessions, retreating from a 13-year peak, before finding support at the 40-day moving average on Monday, when it closed down, but above a session low. The sell-off has pushed its 14-day relative strength index (RSI) out of the overbought territory above 70, down to 47.8. "The technicals aren't over-stretched any more," Choudhry said. "People are hoping for a bit more of a dip so they can buy more cheaply, but if (the market) holds here and builds on that, then I think we will start to see more buying." Among individual stocks, GKN, one of the cheapest companies in the FTSE 100 on a share-price-to-earnings basis, was the top riser, up 5.6 percent after UBS said the company was now "better positioned strategically and operationally", raising its price target to 350 pence. Wolseley, one of the most expensive shares in the index at 18.6 times current earnings, fell 4.2 percent after posting below-forecast third-quarter results. "...we believe that there is a lot of good news already in the share price; take profit, sell," Andy Brown, analyst at Panmure Gordon, said in a note. (Editing by Tom Pfeiffer) Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions