LONDON, October 8, 2011 /PRNewswire/ --
Quarterly reports and trading announcements can send a company's price flying upward or downward with some velocity. For example, the 5th October saw Tesco and Sainsbury's report trading updates to shareholders. While Sainsbury's largely met expectations, Tesco shares delivered a weaker-than-expected report of profits - and the markets reacted accordingly.
Joshua Raymond, Chief Market Strategist at spread betting provider City Index (http://www.cityindex.co.uk/), states: "Tesco reported a rise in half year profits of 3.7%, with operating profits of £1.77 billion, which fell some way short of market expectations of £1.83 billion with overseas markets unable to fully balance weak UK consumer activity. By comparison, Sainsbury's reported a slightly better than expected rise in sales of 1.9% in what has been interpreted as a fairly resilient performance, despite the consumer headwinds facing UK retailers at the moment."
"Sainsbury's shares rallying 4% that morning to trade near the top of the FTSE 100 - and Tesco shares losing ground on a day most UK stocks rose - shows how shareholders reacted to the update."
City Index provides a weekly calendar of forthcoming economic announcements and company reporting dates, keeping traders in the loop with events that might otherwise catch them off-guard. The effect these announcements can have is clear, so it is crucial traders prepare for them.
View the current economic calendar at:
http://www.cityindex.co.uk/market-analysis/economic-calendar.aspx
Spread betting and CFD trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.
About City Index:
Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.
As a group, we transact in excess of 1.5 million trades every month for individuals in over 50 countries worldwide. We provide access to a wide range of instruments including margined foreign exchange, CFD trading and, in the UK, spread betting.
We constantly look to improve the performance of our platforms and expand the range of services we provide. The result is that our customers benefit from innovative trading tools with transparent pricing, competitive spreads, and a high standard of customer service and support. Visit http://www.cityindex.co.uk/learn-to-trade/ for more on spread trading.
