Returning Nervousness Sees FTSE Spread Betting Market Decline
In mid-morning trading, the FTSE has fallen around 15 points as some nervousness creeps back into spread betting markets following two days of gains.
The week’s advance remains capped at the 5700 level, with the FTSE falling back below this point despite having managed to close above it yesterday.
However, the losses remain modest at this stage, and with little new to note this morning, it may just be that we are seeing a pause for breath.
Poorer US data yesterday had little impact, since bad news currently tends to increase the prospect of more easing in the US.
However, Microsoft‘s first ever quarterly loss dented the mood somewhat last night, as the tech giant was forced to take a significant hit on the value of its online ad business.
In a fairly light economic calendar today, the focus remains on US earnings with General Electric, Schlumberger and Xerox on the schedule.
It has been a quiet week in general, one mercifully free of Eurozone frights, but I wonder how long this can actually continue with Spanish and Italian yields remaining at or near to unsustainable levels.
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.
July 20, 2012 No Comments