FTSE Spread Betting Market Falls on Greek Remarks and Divided Fed Minutes
The spectacle of an ugly fallout between Greece and its Eurozone cousins has caused the FTSE spread betting market to drop by 45 points in mid-morning trade.
Risk has been unceremoniously thrown out today, as a triad of Greece, yet another action by Moody’s and a less-than-encouraging set of Fed minutes send investors running for safe havens once more.
With the vocal broadsides from Athens and the rest of Europe becoming ever more vicious, it looks as if we are heading for the first Western default in decades.
Yesterday’s conference call produced little, with Europe demanding more detail on Greece’s latest austerity measures, and we now have to wait until Monday for any real decisions on the second bailout.
Meanwhile, Moody’s has put a swathe of European financial institutions on review for a potential downgrade, and this is pushing financial UK stocks lower as a result.
The latest set of Fed minutes raised the worrying possibility that policymakers in the US remain divided about the new monetary support for the economy.
QE3 in the US has always been a distant possibility in my view, but the hope of more action was enough to support indices spread betting markets, even when Europe was in a funk.
With QE3 looking even less likely now, the recent rally is looking precarious for the first time in over a month. Looking to this afternoon, the Dow Jones is expected to start around 30 points lower.
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.
Financial Market Comments from Chris Beauchamp, Market Analyst, IG Index.
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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