UK shares spread betting markets have made a strong start to the day.
It’s the banking sector that is propelling the FTSE higher this morning, with RBS, Barclays and Lloyds showing gains of 5% or more to claim the top of the leader board.
The banks’ strength is a reaction to last night’s announcement of a plan by the government and the Bank of England to try and stimulate bank lending.
UK spread betting investors have broadly welcomed this move as an effort to try and insulate at least some of the UK economy and banking sector from further fallout from the European debt crisis.
However, whether this will end up having a significant impact on the underlying UK economy is debatable.
The reluctance of banks to lend is arguably just a small part of the overall economic malaise at the moment.
Looking ahead to the US open, the Dow is currently forecast to start around 70 points higher at 12,722.
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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.
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