The FTSE 100 has made further gains this morning, building on the advances made yesterday during the post-intervention lurch higher.
There was an initial dip as Chinese manufacturing activity was reported to have slowed for the first time in nearly three years. However, good Eurozone manufacturing data and a strong Spanish bond auction has put the bulls back in the driving seat.
Also stepping up to the auction plate this morning will be France, so markets will be hoping a similar result will be seen in this sale of debt as well.
However, as the morning has worn on, we have seen the FTSE index spread trading market edge back off its highs.
Despite yesterday’s concerted rescue by central bankers, sentiment remains weak.
Perhaps spread betting investors have realised that things must indeed be bad if such a dramatic move is called for.
Comments from ECB head Mario Draghi also provided food for thought, as he observed that downside risks for the Eurozone economy have increased.
US markets are currently set to surrender some of yesterday’s upward move, and are looking to open around 24 points lower.
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Financial Market Comments from Chris Beauchamp, Market Analyst, 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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