Spread Betting & CFD Trading News: FTSE Hits New 4 Month High on Positive Us Tech Earnings

Greater London, England -- (SBWire) -- 09/22/2010 -- Joshua Raymond, Market Strategist, City Index commented:

“The FTSE 100 pushed higher to a new 4 and a half month high today of 5612 after traders were bulled by better than expected earnings at Research in Motion and Oracle. The US tech earnings helped to surge Asian markets early this morning and this theme firmly continued into the opening European session.

However, as the FTSE 100 traded around key technical resistance levels of 5610, the markets drifted back towards the 5550 level as traders started to bank profits and this poses a big question mark on whether Septembers gains are sustainable.

Much of the energy behind today’s gains has come from risky asset classes such as energy and mining firms. These two sectors have benefited from rallying prices of both Copper and Crude Oil which have had a beneficial knock on effect on the key miners and oil firms on the FTSE 100.

However, it has not taken traders too long to start locking in their profits as the FTSE traded around key technical levels of 5610 and therefore the FTSE charge remains in doubt until the UK’s index can consistently close above the 5610 level.

The bullish earnings from both RIM and Oracle, two highly watched technology firms in the US, have raised sentiment somewhat that company earnings continue to improve for the third quarter. As we edge close to October, traders will start to eye up company earnings as a natural point where Indices could continue to rally if earnings outperform and last night’s better than forecast results from both RIM and Oracle have brightened Q3 outlook somewhat.

Invensys surges on CSR deal
Invensys led the FTSE 100’s charge today with their shares is strong demand after reaching an agreement with Chinese firm CSR Corp to allow it to license their interlocking technology called Westrace in China. The deal is being seen as very positive by traders as it unlocks the grid iron doors to the lucrative transit market in China where Invensys and CSR will now work together to sell the system. We have seen strong buy demand for Invensys shares today, which have surged to a new seven week high on the back of the deal.”

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