Shares Spread Betting: BP Stock Rallies on Word of TNK-BP Stake Disposal

Posted on | June 1, 2012 | No Comments

The FTSE 100 was down by 0.91% at 5272 at 12.45pm (London time), while Wall Street futures were weaker ahead of the US non-farm payrolls.

Markets were in sell-off mode as a result of the uncertainty surrounding the US economy. The number of US citizens in work is expected to increase to 150,000 in May from 115,000 in April.

Also out is the US unemployment rate for May, which is expected to stay steady at 8.1%.

Financial spread betting investors will be looking at personal spending data, which is expected to stay the same at 0.3%. At 3pm, US ISM Manufacturing figures will be released – this is expected to reduce slightly to 53.8 for May from 54.8 previously.

Back home, BP’s shares spread betting market rallied 2.61% by 12.45pm after the Alfa-Access-Renova consortium representing BP’s local partners in TNK-BP received a notice that the British major intends to dispose of shares in the Russian oil company. [1]

On the commodities side, oil fell below the psychologically key level of $100 a barrel, striking an eight-month low.

US and German bond yields reached all-time lows on the back of the Spanish uncertainty. German two-year bond yields have in fact turned negative, which means investors are paying to hold German debt.

Source: [1] Reuters (1 June 2012)

By Chris Beauchamp, Market Analyst, IG Index.

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