RBS Results Boost FTSE Spread Betting Index Ahead of Non-Farm Payrolls
In mid-morning trade the FTSE spread betting index is back above the 5700 level.
Blue-chips in London have made a strong start today, clawing back some of Thursday’s losses.
There is the feeling that maybe yesterday’s fall, driven by disappointment at the lack of any firm action by the ECB, was overdone and various risk assets are making gains this morning.
Leading the way in London are banking shares as RBS announce second-quarter profits.
These are down by a fifth year-on-year but in line with analyst expectations.
Both RBS and Barclays shares are up by around 4% so far, giving a useful lift to the FTSE.
Also having an impact on sentiment is anticipation ahead of today’s Non-Farm Payrolls release.
Predictions are for around 100,000 jobs to have been added in the US economy last month.
Even some disappointing results haven’t hit the market too badly, with some feeling this adds pressure on central bankers to provide some stimulus.
As a result, some traders may be viewing the market strength ahead of the release as something of a one-way bet.
Looking ahead to the US open, at the moment the Dow is forecast to start up 50 points at 12,929.
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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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August 3, 2012 No Comments