Contracting UK GDP Data Weakens FTSE 100 Spread Betting Market
In mid-morning trade the FTSE 100 is down around 32 points, knocked back by a slightly weaker UK GDP reading.
Early gains for the FTSE 100 were wiped off the slate after figures showed that the UK economy shrank by more than expected during the final quarter of 2011.
A drop of 0.2% in GDP is not exactly dire, but with sentiment still so uncertain it provided an unfortunate surprise.
Manufacturing activity fell by 1.2%, while the services sector saw neither growth nor contraction.
Strong results from Apple last night, which smashed through expectations as usual, has lifted ARM Holdings by 4%.
In addition, fund managers Ashmore and Hargreaves Landsdown were boosted by an upgrade from Barclays Capital, just one day after being downgraded by RBS.
Aside from some home sales data during the afternoon, the main event in the US will be the latest Fed decision.
This will be the first time that all 17 policymakers will get to publicise their expectations for rates in 2012, together with an explanation.
Bulls will hope that none of the committee is getting itchy about the record low rates.
The Dow is expected to start the day slightly lower, down 30 points.
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.
0 comments
There are currently no comments. Please start by filling out the form below.
You must log in to post a comment.