FTSE 100 Spread Betting Market Makes a Positive Start to September
Financial Market Comments from David Jones, Chief Market Strategist, IG Index.
The FTSE 100 has started the new month promisingly, as recent pieces of better-than-expected data have put some fire back into markets.
Miners have been boosted by news that China’s official purchasing managers’ index rose to 51.7 in August, up 0.5 points from July.
The news benefited the FTSE’s mining sector in particular, with Fresnillo up 3.67% and Xstrata and Kazakhmys both adding 1.90% to their share price.
While we have seen a broadly decent start for equities, investors are certainly not leaping headlong into risk assets.
To put the morning’s gains into context, we are still well below the 5300 resistance level.
Recent data from the US and China has not been spectacular, it has simply not been damningly disappointing.
While this is in itself an improvement on the range of soft numbers that have been keeping share prices on both sides of the Atlantic firmly under the cosh, it is unlikely to spark any significant rally on its own.
That said, the month has started well and has certainly set the tone for possible further gains on the spread trading markets, but only if they can be underpinned by decent numbers.
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 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.
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