Bargain hunters expected to drive shares growth
PRE-OPEN REPORT: Shares are tipped to open 30 to 35 points higher this morning, as bargain hunters seek out opportunities following yesterday’s sharp falls.
In the US last night, the Dow fell 40 points at 11,052, the Nasdaq Composite lost 9 points at 2,525 and the S&P500 shed 2 points at 1,188.
In Asia today, the Nikkei was last off 163 points at 9,963, while the Hang Seng ended the morning down 258 points at 22,908.
Yesterday, shares were sharply lower at the close, as euphoria over the multi-billion euro deal to bail-out Ireland faded, stalling metals prices hit miners, and traditional retailers weakened.
At the close of business, the FTSE100 was down 117.75 points at 5,550.95 with the FTSE250 off 119.83 points at 10,689.6 and the FTSE Smallcaps 5.65 points lower at 3,013.04.
As markets opened this mornig, a European survey said the recovery was taking hold, but progress was uneven.
The European Commission’s autumn forecast foresees a continuation of the economic recovery currently underway in the EU.
GDP is projected to grow by around 1¾% in 2010-11 and by around 2% in 2012.
A better than expected performance so far this year underpins the significant upward revision to annual growth in 2010 compared to the spring forecast.
However, amid a softening global environment and the onset of fiscal consolidation, activity is expected to moderate towards the end of the year and in 2011, but to pick up again in 2012 on the back of strengthening private demand.
