FTSE 100 Spread Betting Market Recovers Early Losses as Miners Weigh
Financial Market Comments from Will Hedden, Sales Trader, IG Index.
The FTSE beat an early retreat this morning, but by mid-morning the index had recovered somewhat and is trading back around the 5700 level.
Miners weighed on London’s blue chips at the opening bell, with both BHP Billiton and Rio Tinto losing ground on word that they had abandoned a joint venture deal.
The proposed deal had met with concern from Europe and Asia about the impact such a venture would have on competition, and the changes demanded by regulators had ultimately proved unacceptable to both parties, despite the huge savings that had been estimated.
Mining peers Antofagasta and Vedanta also lost out as HSBC lowered its recommendations for both. In addition, falling copper prices compounded miners’ worries and ensured the unlikely situation that at 10.45am (London time) miners occupied the bottom eleven spots on the index leader board.
By mid-morning, however, gains from the likes of Man Group and Lloyds had pared the FTSE’s early losses and the index was back at around its opening level, down only by the slightest of margins (-0.06%).
After bursting through 5750 temporarily last week, and the subsequent sell-off on Thursday and Friday, it will be interesting to see whether the FTSE 100 spread betting market can sustain the strong sentiment seen recently. This is especially true with the all-important spending review in store midweek.
Spread betting carries a high level of risk to your capital. You may lose more than your initial investment. It may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.
Good Luck!
DB
The above comments do not constitute investment advice and Clean Financial accepts no responsibility for any use that may be made of them.
Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.
October 18, 2010 2 Comments