FTSE bounce?

donshale

The FTSE has just bounced back up over 1% in just 40 minutes between 14.00-15.00 this afternoon. Eased back a bit afterwards.

I've trawled the news and can't see any positive news released around this time. Last news:
Bank of England policymaker says UK faces appreciable risk of recession
Italy debt collapse would end euro: Merkel, Sarkozy

Anyone know why the market went cheerful?

Lokolo

donshale wrote: »

The FTSE has just bounced back up over 1% in just 40 minutes between 14.00-15.00 this afternoon. Eased back a bit afterwards.

I've trawled the news and can't see any positive news released around this time. Last news:
Bank of England policymaker says UK faces appreciable risk of recession
Italy debt collapse would end euro: Merkel, Sarkozy

Anyone know why the market went cheerful?

It's Friday so most people most probably came back from the pub after a couple of drinks.

competitionscafe

Dow Jones rose a bit on opening so probably linked to that?
http://www.bbc.co.uk/news/business/market_data/stockmarket/2/default.stm

There have also been several consecutive days of falls so a bounce was likely at some stage.

westy22

When the US wakes up then so does the LSE. US has been closed since Wednesday evening so all London traders just pass the time playing Monopoly

donshale

competitionscafe wrote: »

Dow Jones rose a bit on opening so probably linked to that?
http://www.bbc.co.uk/news/business/market_data/stockmarket/2/default.stm

There have also been several consecutive days of falls so a bounce was likely at some stage.

I guess the law of averages yes, but this isn't supposed to be like Bet365 or Paddy Power is it? Why all the buying at 14.00 without any positive news or any indication the up trend will continue?

Ark_Welder

http://uk.reuters.com/article/2011/11/25/markets-europe-stocks-extends-idUKL5E7MP20G20111125

TCA

On a related note, assuming a lack of news, does the UK stock market traditionally rise or fall when opening after the new year? Or neither? Same question for the start of the new tax year.

There's likely not a definitive answer but just wondering what people's perceptions were. I might throw a few quid into my pension before 6th April to make use of the tax breaks, so will try and the time market if at all possible.

donshale

Ark_Welder wrote: »

http://uk.reuters.com/article/2011/11/25/markets-europe-stocks-extends-idUKL5E7MP20G20111125

Ah. So that's what happened!

Nothing appeared on Google News, Yahoo Finance, Reuters etc at the time of the announcement.

So how can small investors get to see the market moving news as soon as it is reported?

Micky_Mouse

TCA wrote: »

On a related note, assuming a lack of news, does the UK stock market traditionally rise or fall when opening after the new year? Or neither? Same question for the start of the new tax year.

There's likely not a definitive answer but just wondering what people's perceptions were. I might throw a few quid into my pension before 6th April to make use of the tax breaks, so will try and the time market if at all possible.

The market traditionally rises in the week before Christmas "Santa Rally", and then falls back in the new year at the first bit of bad news or simply due to profit taking.

Apart from that (and there is no guarantee it will happen again this year) timing the market is virtually impossible. However drip feeding can to a certain extent even out the highs and lows.

gadgetmind

donshale wrote: »

So how can small investors get to see the market moving news as soon as it is reported?

Small investors (including myself) are generally better off not attempting the sort of market timing that would require this info.

cepheus

Any news could rapidly move prices on low volumes. The Dow was back down at the early close. This makes the grey FTSE around 5145 now.

If you open up a free spread betting account with someone such as IG you will get a Reuters feed. Be careful what you press though!

Problem is with news is being able to tell the important stuff from the mediocre, and even then short term movements are more likely to respond to technical and random surges rather than fundamentals.