Category — Financial Spread Betting Tips

A new video taking a broader look at the financial markets. As usual, Bill Hubbard, Chief Economist of Markets.com, has plenty to say.

This week’s topics include:

• We may be more selling in June and July
• The stock market could bounce back as quickly as it fell
• Is there a bond bubble?
• Yes, we are seeing some positive economic data but it is not great data
• EUR/USD and the Euro is being supported buy the selling of central European currencies
• It might be right for Stephen Hestor to leave RBS but its poor planning

Spread Betting & CFD trading carry a high level of risk to your capital and you can lose more than your initial deposit. Only speculate with money that you can afford to lose. These trading products may not be suitable for all investors so seek independent advice.

Video content by Capital Spreads.

The contents on CleanFinancial.com are for information purposes only and are not intended as a recommendation to trade. Nothing on this website should be construed as investment advice.

Neither CleanFinancial.com nor any contributing company/author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.

Content provided by Capital Spreads which is Authorised and regulated by the Financial Services Authority. FSA register number 3218125.

The FTSE has fallen over 70 points today and is currently trading at 6225.

Traders are trying to stay afloat in a sea of red this morning after the Nikkei 225 ventured into bear market territory overnight.

The plunge in Japanese equities was brought about by the fear that the Fed will taper its QE scheme, compounded by the Bank of Japan’s unwillingness to expand its stimulus package during the week.

In London, trading volumes and volatility are both high as dealers quickly close out positions.

The recent rally in global equity markets was entirely a creation of central banks and this sell-off is the proof; investors were not confident in the global economy but they knew central banks would throw money at the problem.

Investors have now developed a full-blown addiction to monetary easing and if you try weaning them off it you will see the odd stumble.

Looking at the US index futures, we are expecting the Dow to open 75 points lower at 14,920.

At lunchtime the latest US retail sales and jobless claims are released, with US unemployment now standing at 7.6%.

If the jobs data is weak, it may provide the QE-inspired confidence injection that traders are craving.

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 Alastair McCaig, 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.

Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.

A new trading video looking at the sell off in the equity markets and the weak bond markets.

• There’s a look at the key 12,200 level for the Nikkei, i.e. a 50% retracement. Is the sell-off overdone?
• The dollar/yen chart suggests we could move back to ¥93.60, i.e. a 38.2% retracement.
• There’s also a quick review of the FTSE 100 and AUD/USD.

Spread Betting & CFD trading carry a high level of risk to your capital and you can lose more than your initial deposit. Only speculate with money that you can afford to lose. These trading products may not be suitable for all investors so seek independent advice.

Video content by Michael Hewson of CMC Markets

The contents on CleanFinancial.com including any articles or videos are for information purposes only and are not intended as a recommendation to trade. Nothing on this website should be construed as investment advice or form the basis of an of investment decision.

Neither CleanFinancial.com nor any contributing company/author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.

Content provided by CMC Markets. CMC Markets UK plc and CMC Spreadbet plc are authorised and regulated by the Financial Services Authority in the UK, registered offices, 133 Houndsditch, London, EC3A 7BX.

Softness in the Asian session overnight has travelled westwards and the FTSE is trading lower by 65 points at 6335.

Despite the continued aggressive monetary easing from the Bank of Japan, the failure to adapt additional stimulus measures to help ease volatility in debt markets has caused European markets fall into the red in early trade.

In Europe, the two-day court hearing in Germany’s constitutional court is catching the attention of all market participants.

Adding to the uncertainty, the legitimacy of the ECB president’s Outright Monetary Transactions programme is being called into question, given that Mr Draghi has been credited with saving the day and helping to drive down peripheral bond yields with his now famous ‘everything it takes’ statement.

The fear that German support for the ECB could waver is also serving to unwind much of the confidence and is contributing to the risk-off mode.

FTSE 100 Under Pressure

The outlook for global growth means the mining sector is once again broadly lower and exacerbating the FTSE’s decline relative to the other European bourses. Anglo American has shaved 3.1% so far this morning.

Aberdeen Asset Management is under pressure, falling 4.5% owing to a recommendation cut by Merrill Lynch.

ICAP is also out of favour, falling 3.73% after Credit Suisse downgraded the stock to neutral.

UK economic data continues to point to a slow recovery, with industrial output rising 0.1% month-on-month in April; this is the third consecutive monthly rise and is serving to underpin the recent brighter manufacturing outlook for the country.

Sterling is consolidating in the aftermath against the US dollar but remains poised for further gains.

Later this afternoon, the National Institute of Economic and Social Research (NIESR) will release an estimate of UK GDP for the quarter, which could well help the overall bullish trend for the pound.

US Update

Stateside, the NIFB Small Business Optimism index will give clues to the recovery in small company sentiment. While this sector has been laggard in the past, the lack of any other data points could make it an important release today. A figure of 93.4 versus last month’s 92.1 is expected.

The Dow Jones is currently looking to open down 65 points at 15,174.

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 Alastair McCaig, 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.

Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.

As well as reviewing Japanese bonds, US bonds and the hawkish FOMC minutes, this technical analysis video looks at most of the popular spread betting markets including the:

• Nikkei 225 which has possibly made a short-term top and could trade sideways in the short-term
• USD/JPY which has also made a short-term top. A test of ¥100 is possible before it attempts the key ¥105.50 level
• S&P 500 which, looking at the technicals, could still continue in its uptrend

There’s also technical coverage of other markets including the FTSE 100, DAX, Dow, EUR/USD and GBP/USD.

Spread Betting & CFD trading carry a high level of risk to your capital and you can lose more than your initial deposit. Only speculate with money that you can afford to lose. These trading products may not be suitable for all investors so seek independent advice.

Video content by Michael Hewson of CMC Markets

The contents on CleanFinancial.com including any articles or videos are for information purposes only and are not intended as a recommendation to trade. Nothing on this website should be construed as investment advice or form the basis of an of investment decision.

Neither CleanFinancial.com nor any contributing company/author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.

Content provided by CMC Markets. CMC Markets UK plc and CMC Spreadbet plc are authorised and regulated by the Financial Services Authority in the UK, registered offices, 133 Houndsditch, London, EC3A 7BX.