Indices Spread Betting: FTSE Falls Despite Pro Bailout Greek Election Result
In mid-morning trading the FTSE has shed all its initial gains, and is now edging lower, down around 5 points.
For the second week in succession, euphoria over apparent progress in the Eurozone has lasted for only a few hours.
Last night’s Greek election saw the pro-bailout New Democracy party edge just ahead of its anti-bailout Syriza rival. This means that, at least for the moment, Greece is no longer headed straight for an exit from the Eurozone.
However, this isn’t the beginning of the end for Greece, in fact, to paraphrase Churchill, it probably isn’t even the end of the beginning.
New Democracy will now try to patch together a ruling coalition, although any government will be shaky at best.
Whilst the Germans have hinted at an extension of time lengths for Greek austerity efforts, they are sticking to their guns on the severity of the measures needed.
In summary, we are really no further along than last Friday, and the spread trading markets have reflected this.
Last week’s relief rally lasted barely a day, this one has been even briefer.
Spanish and Italian yields have begun rising once again, while most indices spread betting markets are now back in the red.
US futures are signalling a weaker start for Wall Street and, with no major events on the horizon, it that seems the bears will predominate for the time being.
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.
June 18, 2012 No Comments