FTSE 100 Spreads Struggle For Direction After Banking Stress Tests
Financial Market Comments from Anthony Grech, Head of Research, IG Index.
Mid-morning and the FTSE has seen the bulk of its early gains ebb away.
Friday’s European bank stress tests received something of an endorsement from the markets with traders reassured by the fact that there were some failures amongst the weaker institutions, as predicted, and this has been played out with London’s listed banks rallying in early trade.
BP has also found support off the news that the drilling of the relief well in the Gulf of Mexico can resume whilst Tony Hayward’s seemingly imminent departure also appears to be cheering the company along.
However, even with these heavyweight elements trading higher the FTSE is struggling to hold onto positive territory. With the summer holiday season now well and truly upon us, this lack of direction is probably something markets will need to grow used to in the coming weeks.
There’s not much due out in the US this afternoon although with speculation of a double dip building, forecasts over the GDP numbers due on Friday are continually being revised lower, the new home sales data expected today will be closely watched.
The earnings season has generally been robust and this is expected to continue in the week ahead but with equities in general running the risk of looking a little toppy once again, the risks remain stacked on the downside.
Anything that proves unsettling, especially in times of quieter volume, could be the next trigger for a sell-off.
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.
1 comment
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