Marc Ostwald – Market strategist at ADM Investor Services – joined Nick Batsford and Zak Mir in the Tip TV studio to discuss the sharp decline in Glencore (LONDON:GLEN) and VW shares, and whether Sterling is starting to slip.
Catching a falling knife?
Despite a 10% boost today, investors are not so hasty to forget the massive losses that are still being made. Zak Mir commented that many investors may have bought the share at £1 expecting a return in value, but instead were met with further decline to 70p. Volkswagen (XETRA:VOWG) could be more favourable. Consumers are unlikely to be dissuaded by the recent scandal.
UK losing momentum.
With the FTSE 100 having broken below 6000, the UK economy is starting to see a general loss of momentum according to Ostwald. This has seen a strengthening of the Euro against the Pound (despite the continent facing its own difficulties).