GBP/USD Spread Betting Market Falls on Bank of England QE Hints
Mid-morning trade for the FTSE 100 sees the index down 20 points, as it continues to struggle in the wake of the Greek deal.
Opinion regarding the Greek bailout plan had been decidedly mixed yesterday, and today’s trading has seen no improvement in sentiment.
While markets have not turned resolutely negative, the race against time that Athens now faces, with just days to finalise a set of reforms, means that investors remain sceptical that Tuesday’s deal really does solve the problem.
Weak economic figures from China and the Eurozone have not helped spread betting sentiment either.
A preliminary Chinese manufacturing reading showed that the sector had shrunk for the fourth month in a row, but the impact was lessened by the weekend’s reserve ratio cut, which might help spur a degree of growth.
Eurozone and German PMI figures were below expectations, suggesting that the debt crisis continues to hurt confidence among businesses.
The GBP/USD spread betting market was also one of the morning’s casualties after sterling fell on Bank of England minutes which hinted that even more QE might be on the way in due course.
US data is fairly light this afternoon, with home sales figures for January being the sole point of interest.
At present Wall Street is expected to start almost unchanged following yesterday’s weak finish, with the Dow opening 2 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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