FTSE 100 Trades Sideways Following Gains: UK Index Spread Trading
Financial Market Comments from Tim Hughes, Head of Sales Trading, IG Index.
The FTSE is currently sitting slightly below its opening level, down around 0.2%.
Top of the pile this morning is Standard Chartered after it reported a pre-tax profit of $5.15 billion for 2009.
The figure came in a shade better than markets were expecting and the stock gained around 2% in early trading as a result.
Other banking stocks took StanChart’s lead, with Lloyds and Barclays up around 1.7% and 1.1% respectively.
However, the UK’s blue-chip index failed to find much momentum, with bouts of profit-taking in the oil and mining sectors neutralising gains for financial stocks.
Given the strong gains of the past few sessions, it’s not too surprising to see some sideways trading so far this morning.
While sentiment remains generally upbeat, investors may well be inclined to take some money off the table.
This could to make sure that the psychological 5500 level doesn’t prove a significant stumbling block in terms of targeting further gains.
Two major pieces of news from the US are due later this week, the Beige Book and Non-farm payrolls, which could set the tone on both sides of the Atlantic.
Positive figures, along with any subsequent gains for US indices, could well be the catalyst needed to take the FTSE 100 to new year-high levels.
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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