FTSE 100 and UK Shares Financial Spread Betting Update
Financial Market Comments from Anthony Grech, Market Strategist, IG Index.
The FTSE is struggling for momentum early on in London trading – hovering just above its opening level.
The UK market is being underpinned by mining stocks this morning, with Xstrata, Lonmin and Fresnillo all up between 2.9% and 4% by 10am in London.
Chocolate maker Cadbury was also up this morning as the prospect of a bidding-war loomed, with Hershey and Ferrero emerging as potential partners to see off Kraft Foods.
Gold prices continued to shoot upward today, with the yellow metal reaching a fresh record-high at $1146.95 an ounce.
The main concern for investors at this stage is that the currently lucrative carry trade – in which people are taking advantage of low rates on the Dollar to invest in equities – might blow up and send equities downhill.
Dollar weakness is also keeping commodities at decent levels, so a sharp rally may have the further knock-on effect of pushing down the heavily-weighted mining and energy sectors on the FTSE.
However, the recent year-highs for equity markets will have bolstered confidence, and while momentum has been in short supply so far today, this looks to be a consolidation rather than another major correction.
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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