Chilean Earthquake Pushes Copper Prices Higher: Commodities Spread Betting News
Financial Market Comments from Anthony Grech, Market Strategist, IG Index.
In mid-morning trading the FTSE has made a positive start to the week.
This morning has seen the FTSE 100 index briefly break through 5400 to hit its best levels since 21 January. The main catalyst today has been the mining sector.
In Asian trading, copper prices jumped up by around 6% following the earthquake in Chile.
Although around half of these gains had been eroded by the London opening, there is still enough concern about supply problems to lift the likes of Kazakhmys and Fresnillo.
The top gainer out of the blue chips so far is Prudential as it confirms its planned purchase of Asian insurance business AIA.
Although last week saw something of a wobble for the recent strength in shares, early signs from today are that sentiment still seems to be positive.
The gains are maybe being overstated by the strength in copper lifting the miners. However, a positive finish today will leave some investors still feeling that a retest of the year highs at 5600 is not impossible, even though it may take some time to get there.
Looking ahead to the US open, at the moment we are expecting the Dow Jones index to start around 50 points higher when it opens.
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.
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