FTSE jumps nearly 2% with security group Smiths leading the way

Discussion in 'Market News' started by Lily, Nov 17, 2015.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
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    Markets continue to be resilient despite Paris attacks, as travel stocks recover

    Leading shares continue to show resilience in the face of the atrocities in France on Friday.

    Investors seem to believe there will be no lasting effects on the global economy from the Paris attacks. But at the same time, any concerns that they might dent consumer confidence and slow down growth has prompted talk that central banks might decide to increase financial stimulus to support the economy (the European Central Bank) or not raise rates this year as expected (the US Federal Reserve).

    Today’s trading update was unlikely to contain positive news – and it does not – but trading is broadly in line with expectations, something of a moral victory, in our view. That suggests Smiths is displaying the greater vitality the previous management sought to instil. There is some good news on pension funding, too.

    The diversified engineering group is clearly managing the downturn in oil and gas well, but on top of this its exposure to high tech body scanners used to enhance security is arguably another reason they’re finding support.

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