Mid-morning and equities are continuing to claw back some of the losses sustained earlier in the week.
Coordinated action overnight by G7 countries to weaken the Yen forex market, after the currency’s recent rally, seems to have helped shift sentiment in equity markets despite the worsening situation at Fukushima.
Moving into the weekend break, there’s without doubt going to be a desire for traders to square-off risk as the nuclear crisis has already been upgraded to put it on a par with Three Mile Island.
In addition, the IAEA has labelled the situation as a race against time and so there’s going to be little desire to get caught on the wrong side of any panic reaction once the markets close.
This G7 intervention is likely to initially shore up stocks on Wall Street, with the Dow futures currently forecasting a gain of around 50 points at the open. Nevertheless, with little in the way of economic or corporate data due in the hours ahead, trader sentiment is again likely to dominate.
The situation in Libya is also going to remain very much on the radar after the UN authorised military action. However, set against a backdrop of what could still be a nuclear catastrophe in one of the world’s largest economies, spread betting account holders are likely to be looking to the east for some time yet.
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Financial Market Comments from Anthony Grech, Head of Research, IG Index.
The above comments do not constitute investment advice and Clean Financial accepts no responsibility for any use that may be made of them.
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