Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Calmer Mood; Brushing Off Barclays, Tesco News

By London Capital Group (Jasper Lawler)Market OverviewFeb 12, 2018 09:33
Calmer Mood; Brushing Off Barclays, Tesco News
By London Capital Group (Jasper Lawler)   |  Feb 12, 2018 09:33
Saved. See Saved Items.
This article has already been saved in your Saved Items

Calmer mood after weekend break

Calmer winds were blowing across markets on Monday after last week’s typhoon. The calm in European share markets follows a less volatile session in Asia. The weekend break seems to have calmed minds after an emotional roller coaster of high volatility. There has been a cross-asset rebound off the lows with stocks, crude oil and currencies like the pound and euro all seeing gains. Still, investors will be aware the calm probably won’t last. A lack of clear catalysts from the earnings or economic calendar on Monday could be a mixed blessing if a bout of irrational selling returns.

Smooth credit markets and North Korea help

For the moment, equity investors appear to be taking heart from the fact that credit markets held up relatively well during the sell-off. Credit spreads have widened but not enough to suggest a collapse in confidence. This would imply the weakness last week was equity-centric and related more to volatility and valuations than it is to a wider fear over the economy. On the margins, signs of easing geopolitical tensions between North and South Korea during the Winter Olympics is one less reason for fear/volatility.

UK shares gain as Crypto-mining malware attacks

Shares in the UK gained ground on Monday as overall risk sentiment improved. The optimism came despite a fall in sales at gold miner Acacia (LON:ACAA) mining and despite signs of economic fragility after the British Retail Consortium reported January saw the worst decline in footfall in 5 years. News over the weekend showed UK government sites were hit by crypto-mining malware. Even if the overall bull market is in doubt, crypto-mining malware is another reason that long-term demand should support the shares of companies providing security software and services.

Barclays (LON:BARC) charged again will not matter again

Shares of Barclays rose with investors clearly unfazed by the bank getting charged by Serious Fraud Office over its 2008 capital raise from Qatar. History shows these kinds of charges are more a boon for lawyers than any serious threat to a bank’s ability to do business.

Muted reaction to Tesco’s budget brand plans

Tesco (LON:TSCO) shares were up modestly in early trading in a muted reaction to unconfirmed reports the supermarket plans to create its own budget brand to rival Aldi and Lidl. For us, it doesn’t make sense to create a new budget brands when Tesco ‘own brands’ are already established. The resources required setting up and marketing a new brand could more effectively be spent cutting prices to better compete.

Wall Street awaiting White House spending plans

Futures are pointing to a higher open on Wall Street ahead of the release of new spending proposals from the Trump White House. Money for US defence and the much-hyped $1.5trn infrastructure plan will be another test for attitudes in markets. Wall Street can either focus on the growth or the deficit implications of any shiny new bridges and airports.

Disclaimer: The information and comments provided herein under no circumstances are to be considered an offer or solicitation to invest and nothing herein should be construed as investment advice. The information provided is believed to be accurate at the date the information is produced. Losses can exceed deposits.

Calmer Mood; Brushing Off Barclays, Tesco News

Related Articles

Ipek Ozkardeskaya
BoE Hawks Can’t Save The Pound By Ipek Ozkardeskaya - Aug 18, 2022

The equity rally in the US didn’t pick up momentum after the Federal Reserve (Fed) released its latest meeting minutes, which sounded more hawkish-than-expected, or more...

David Madden
Equities Gain, Oil Drops   By David Madden - Aug 16, 2022

European stock markets closed higher on the session even though Gazprom (MCX:GAZP) cautioned that gas prices could jump an additional 60%. In recent weeks, we have seen bouts of...

Calmer Mood; Brushing Off Barclays, Tesco News

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email