FTSE 100 Makes a Positive Start to the Week: UK Market Spread Betting News
Financial Market Comments from Philip Gillett, Sales Trader, IG Index.
In mid-morning trading UK blue chips are modestly higher, with bid interest lifting the utilities.
After finishing off last week at its worst levels for a couple of months, the FTSE has made a firmer start today by regaining the 5200 mark.
The biggest gainers are United Utilities and Severn Trent following a weekend of press speculation about bid possibilities for sector stable-mate Northumbrian Water.
Utilities aside, there are decent gains for a mix of shares, including mining stocks – back in favour after a torrid time last week.
We may see UK markets stuck in a tight range over the next few days ahead of Thursday’s Bank of England announcement. Some investors are speculating this will include halting its programme of bond purchasing.
Given that UK GDP was weaker than expected this could be seen as a high risk strategy and will do little to calm still-nervous markets.
Looking ahead to the US open, we are expecting a stronger start to Wall Street trading with the Dow looking set to open around 50 points higher than Friday’s close.
However, as in the UK, sentiment in the US remains negative, with rallies in stock prices proving unsustainable.
The 10,000 level is going to be closely watched on the Dow Jones this week and any slides through here could be the catalyst for more aggressive selling.
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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