Category — Financial Spread Betting Tips

Financial Market Comments from Philip Gillett, Sales Trader, IG Index.

In mid-morning trading UK shares have started off weakly again as investors await the latest US unemployment numbers.

We are seeing fairly broad-based weakness so far today for London blue chips, with another weak performance on US markets and indices weighing on sentiment.

This is the fourth day on the trot we have seen weakness for UK shares as the last two weeks have proved to be a real test of whether traders believe this weakness is yet another buying opportunity for the next push higher.

So far the 5000 mark has underpinned the FTSE slide today, and now all eyes are on the latest US Nonfarm payrolls release, due out at 1.30pm UK time.

This is expected to show that around 175,000 jobs were lost in the US economy last month – a number worse than this could be the catalyst that erases any remaining positive sentiment for the short-term and may spark a bigger sell-off.

At the moment, US markets are looking a little firmer ahead of the official open, with the Dow Jones currently trading 15 points higher than last night’s close, but this is irrelevant until those payrolls are out of the way.

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.

Good Luck!

DB

The above comments do not constitute investment advice 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.

Financial Market Comments from David Jones, Chief Market Strategist, IG Index.

In mid-morning trading, it has been a strong start to the week, with the FTSE 100 up by around 60 points so far.

UK stocks continue their rally from the two-month low seen a week ago and have got back to levels last seen in mid-June.

Once again it is the miners and financials dictating the direction of the market – Lloyds Banking Group is the top gainer ahead of results later this week.

There has been something of a resurgence of interest by traders in the banks after a quiet couple of months and market reaction to these Lloyds figures could well set the tone for the direction of UK shares for the next couple of weeks.

Today’s strength sees the FTSE well above the 4400 mark and approaching an area that has been a real problem since early May.

Successive rallies to the 4500 zone ran out of steam on four separate occasions recently – so the next couple of days will be a real test for the latest spurt in positive sentiment.

Many traders would see a decisive break through 4500 as the sign of renewed optimism for stock markets, after a nervous few weeks, and would leave them targeting the year’s highs at 4700 next.

Ahead of the US open, we are expecting the Dow Jones to open up around 50 points higher than Friday’s close.

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.

Good Luck!

DB

The above comments do not constitute investment advice 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.

Financial Market Comments from Philip Gillet, Sales Trader, IG Index.

In mid-morning London trading UK shares are slightly higher.

It is a reversal of fortune that is lifting the FTSE 100 up today, with a bounce back by the mining sector helping to lift sentiment across the market.

However, tempering the rise has been the latest UK factory production figures, showing a drop in May – doing little to ease investors’ fears that economic recovery is still some way away.

Looking ahead to the US market open, we are expecting a flat start for the Dow Jones index, with little change from last night’s close.

There is little of note on the economic calendar, suggesting a directionless day ahead, and it would not be surprising to see stock markets edge lower as traders choose to stay on the sidelines before the earnings season gets into full swing.

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.

Good Luck!

DB

The above comments do not constitute investment advice 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.

Financial Market Comments from Philip Gillet, Sales Trader, IG Index.

Coming up to the mid-morning period, the FTSE 100 is sitting around the 4220 level and trading in a 20-point range, but finding support above 4200.

Oil is pretty much flat, trading around $69, while gilt futures are up, trading around 117.90.

Sentiment has definitely become more timid. The question now is where equity markets go from here.

Less has been said of the ‘green shoots’ over the last couple of weeks, with investors beginning to realise that shoots need roots if they are to survive.

And with world regulators beginning to beef themselves up, there is now a real fear that they may hamper economic recovery as efforts are made to control the financial institutions perceived to have caused the meltdown.

We have entered a fairly benign trading period of late, which is likely to last throughout the summer.

The Fed looks set to keep rates low, especially as the US housing market is still falling.

Mortgage applications out at midday and home sales at 3pm (London time) will be closely watched by traders for an indication as to when and what the US central bank’s next move will be.

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.

Good Luck!

DB

The above comments do not constitute investment advice 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.

Financial Market Comments from David Jones, Chief Market Strategist, IG Index.

In early morning trading in London, it is another quiet day for UK shares so far.

It has been confirmed that Blackrock are buying the investment division of Barclays bank, with Barclays holding on to a 20% stake in business.

This news comes as no surprise to the markets and the weakness today for the Barclays share price seems a case of “buy the rumour, sell the fact”.

Barclays shares had rallied by almost 20% over the past week or so and, for now, the 300p mark still seems to be something of a psychological barrier to any more progress.

Telecoms business BT Group is the biggest gainer in blue chips so far, up by around 5% on the back of an investment bank’s upgrade.

The initial momentum from this morning’s open still seems strong and the next big level technical traders are eyeing is the 100p mark – this has successfully stopped any strength over the past couple of months, so it would not be surprising to see some of the bullishness fade as the day goes on.

Looking ahead to the US, we are expecting the Dow Jones index to open slightly down, around 10 points below last night’s close. As with UK markets at the moment, there seems a lack of conviction in any direction for US stocks.

Yesterday saw the US index push out to its best levels since early January, but this strength faded and most of these gains were given back very quickly.

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.

Good Luck!

DB

The above comments do not constitute investment advice 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.