FTSE 100 Spreads Struggle as EU Withholds Greek Funds to Await Reform Progress
In mid-morning trade, FTSE 100 spreads continue to hold near recent highs, but the index is once again bereft of a reason to move substantially in either direction.
Consolidation is back in fashion this morning, as financial spread betting investors weigh various competing bits of news after a week of choppy trading.
News that European leaders have withheld more than half of the next bailout tranche for Greece is giving cause for concern, since it means that Greece will have to edge even closer to the bailout precipice of 20 March.
Ministers want to see that Greece is making real progress on reforms, but this international game of Chicken is doing nothing for risk appetite.
Also dampening sentiment this morning is a report that shows that banks continue to park large amounts of cash with the ECB, despite the substantial largesse distributed in the two refinancing operations.
A relatively quiet economic and corporate calendar also means that there is still little that can be used to support a bullish argument.
After a mixed session last night on Wall Street, Dow futures point to a 17-point drop on the open for this market. However, the lack of US data means that markets could well end the week on a quiet note, marking time until any weightier news appears next week.
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 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.
Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.
March 2, 2012 No Comments