Posts from — September 2011

In mid-morning trade shares in London are under some pressure.

Since the open today we have seen the FTSE 100 spread betting market steadily edge its way lower, continuing to eat into the gains seen earlier this week.

There is no one sector that stands out as a drag on the market. However, across Europe luxury goods manufacturers are feeling the pinch on concerns over a Chinese slowdown, which explains why Burberry is one of the FTSE’s biggest losers so far.

Looking ahead to the US open, expectations are for the Dow Jones to start around 80 points lower this afternoon.

With Chicago PMI and Michigan Sentiment data due for release, there is enough to keep traders busy.

Having said that, the Dow still feels as though it is in a holding pattern, waiting for the next stage of the European drama to unfold.

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.

Financial Market Comments from Ben Critchley, Sales Trader, 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.

Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.

It’s been a mixed start to trade in Europe with the FTSE 100 faring the worst of the major indices.

All eyes are very much on Germany where the vote in the Bundestag over expanding the European Financial Stability Facility is set to take place imminently.

Expectations that we’ll see the motion carried in favour of Chancellor Merkel are running high, even if the proposal ends up relying on opposition votes.

The political implications of failure are so great that although we can expect more sabre rattling from politicians and central bankers alike, today could mark something of a turning point.

Banks have been the stand-out winner for London shares today, and indeed right across Europe too.

Again, the prospect of greater certainty over the liabilities they’re going to incur from the current crisis is encouraging investors to pick up stocks which are still trading at significant discounts after the recent sell-off.

Obviously, if the vote fails we’re going to be looking at a rather awkward afternoon session to say the least.

Otherwise, attention will swing to US GDP and personal consumption readings, both of which have the potential to provide some meaningful direction.

Durable goods data yesterday proved impressive but the macroeconomic debate still dominates the US.

As we saw ahead of the close on Wall Street last night, a quick change in sentiment is all it takes to inject fresh swathes of volatility. We’re current calling the Dow Jones up around 120 points.

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.

Financial Market Comments from Ben Critchley, Sales Trader, 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.

Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.

Mid-morning and the London index is working hard to pull back into positive territory.

The FTSE 100 fell in the opening minutes of trade and has spent the last few hours attempting to break back into positive territory.

Expectations may have been for another blood bath after media reports that a number of Eurozone members wanted private bondholders to take a bigger hit over the Greek crisis.

However, investors now seem to be accepting that this is just detail and to see one nation drop out of the common currency would be of little overall benefit.

That said, with US durable goods orders due in a couple of hours time, the potential for this reading to disappoint cannot be overlooked and it would be the perfect trigger for markets to unwind once again.

There’s been some interest on a stock specific level in London this morning too as market volatility left hedge fund, Man Group feeling somewhat blue.

What’s more, they expect investor sentiment to remain lacklustre through to the year end, pushing the company’s stock some 20% lower as a result.

At the opposite end of the spectrum, broker upgrades and bid chatter helped lift BG Group fractionally.

The energy sector as a whole managed to find a degree of cheer too with the recovery in oil prices off recent lows adding support here.

Ultimately, however, trader sentiment remains dominant, and so long as mixed messages keep emerging from European politicians and central banks, the threat of volatility will continue to loom.

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.

Financial Market Comments from Ben Critchley, Sales Trader, 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.

Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.

It’s been another strong start for the UK in mid-morning trade, with the FTSE 100 up around 100 points.

A positive performance in the US on Monday pushed the Dow Jones index back above 11,000 and the momentum has continued into this morning’s European open.

Mining stocks are leading the way for once, with the likes of Vedanta Resources and Kazakhmys up by 7%.

Miners have felt the pressure in recent weeks with a double whammy of a market collapse and worries about falling global demand.

Today’s rally is an impressive one, but it is hard to see today’s mining sector strength as anything but a dead cat bounce while economies continue to struggle.

The speech by Greek Prime Minister Papandreou in Germany this morning contained a balance of contrition and optimism for the future. However, as usual, it won’t be long before spread betting investors are looking for action to back up the politician’s words.

In the meantime, hopes of progress at last for the European debt crisis have continued to boost markets.

Looking across the Atlantic, another strong start is expected with the Dow forecast around 130 points higher.

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.

Financial Market Comments from David Jones, Chief Market Strategist, 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.

Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.

In mid-morning trade, the FTSE is slightly higher on the day after a very volatile first couple of hours.

The casual observer could be forgiven for thinking it’s been a calm start to the day, with the FTSE trading around 30 points higher.

However, the first couple of hours have already seen a 100 point-plus range for the index, as traders weigh up the implications of the latest words from EU leaders.

For now at least, it looks as if markets are giving some credence to a firm plan on how to tackle the debt crisis beginning to emerge. However, if recent experience is anything to go by, this patience is unlikely to last too long if details are not forthcoming.

Mining shares are still under pressure today, but banks are finding some relief from this weekend’s discussions with the main UK shares from the sector up around 4%.

Looking ahead to the US open, at the moment we are forecasting around a +70 start for the Dow Jones when trading resumes this afternoon.

With New Home Sales the only major announcement, expect markets to remain volatile, buffeted by the usual rumour and speculation surrounding the Greek crisis.

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.

Financial Market Comments from Ben Critchley, Sales Trader, 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.

Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.