The FTSE 100 has managed to post modest gains this morning, up around 20 points as investors attempt to pick up the pieces following yesterday’s remarkable session.
‘Fragile’ is perhaps the most appropriate word to describe spread betting sentiment at present.
Yesterday’s trading showed that even €100 billion is not sufficient to rebuild battered investor confidence, and Spanish and Italian yields are creeping higher once again.
A warning from Fitch this morning about Spain’s deficit reduction efforts reminded investors that the underlying problems in the Iberian economy are far from being fixed. The ratings agency even suggested that that Madrid will miss its deficit targets for 2012 and 2013.
Italy of course is never far away when we consider Spain’s situation; add Greece into that mix and you have a dangerous combination.
Meanwhile, with corporate news fairly thin on the ground there is little to get excited about, even after Apple‘s unveiling of its latest shiny gadget.
Given the current stresses afflicting the Eurozone, it is perhaps ironic that the ECB will publish its latest financial stability review today, but I suppose we could all do with some light relief.
Aside from this, the economic calendar remains fairly quiet. Ahead of the open, the S&P 500 is expected to start around six points higher.
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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.
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