Investors remain cautious despite signs of hope for Greek debt negotiationsAfter hitting a new peak on Monday leading shares came back down to earth with a bump.A mixture of economic worries, mixed company results and geopolitical tensions pushed the FTSE 100 73.45 points lower to 7030.53, with European markets also under pressure. Chris Beauchamp, senior market analyst at IG, said:The problem for investors in all markets is that while they haven’t found reasons to sell stocks, they haven’t got firm arguments for buying them either, condemning us all to more of this whipsaw action. The announcement that the group has entered into a conditional agreement to buy the entire issued share capital of Mouchel clearly helps accelerate the chief executive’s Vision 2020 strategy. However, this is another big deal, following on from May Gurney (July 2013) and we wonder whether the business would be better focusing on its core, rather than risk spreading itself too thinly across a myriad of verticals? Whilst the deal is expected to be materially earnings enhancing, we have some reservations and therefore move from buy to hold. Continue reading...
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