FTSE Shrugs Off Ratings Downgrade to Push Higher
The FTSE spread betting market was up 33 points at 6368 approaching 10am, shrugging off debt-rating fears as it sets itself up for a fresh attack on the 6400 level.
News over the weekend that Moodyâ€™s had downgraded UK debt did not come as a real surprise.
This morningâ€™s price action by equity, currency and debt markets probably says more about the lack of credibility that the debt-rating agencies Moodyâ€™s, Standard & Poors and Fitch are held in than anything else.
European spread betting markets have been preparing themselves for another day of uncertainty, with Italian voters due to go back to the polls for a second day of voting.
As Italy has had 60 different governments in the last 66 years it will arguably come as no surprise if, as expected, a coalition will need to be formed in order to create a new government.
In equity news, the weekendâ€™s press speculated that the Royal Bank of Scotland would be pressed into a share sale ahead of the UK elections.
Pearson expects 2013 to be in line with expectations despite a ÂŁ150 million restructuring cost, and Associated British foods first-half figures were better-than-expected thanks largely to the performance of its Primark brand.
Looking ahead to the US open, the Dow is being called to open up 23 points at 14,023.
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Financial Market Comments from Alastair McCaig, 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.
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