IMF Lending Rumours See FTSE 100 Spread Betting Market Recover Losses
Early falls on the FTSE 100 this morning were erased by rumours of a boost to IMF lending, with the FTSE recovering all its losses to end up flat in mid-morning trade.
Nervousness ahead of Greek debt talks and results from Goldman Sachs caused markets to fall back slightly this morning, combined with caution ahead of a Portuguese bond auction.
Greek officials enter a showdown with private bondholders today, as the nation that started the Eurozone crisis all those months ago edges closer towards the abyss of default.
The talks broke down last week over the reluctance of some participants to accept an excessively large haircut on their bond holdings.
If a deal is not resolved, then Greece will officially run out of ready cash at the end of March, although the denouement could come much sooner than that if markets think that this is the likely outcome.
In the leading index itself, Man Group is enjoying a 5% rise after fund redemptions slowed at the end of 2011, but Tullow Oil is down 6% on worries about delays to production at one of its fields.
The rumours from the IMF about an increase in lending may have helped to spur markets, but ultimately the rumour is from just one official, and is only a proposal, not a concrete decision.
Dow futures suggest a decent start for Wall Street, with the Dow expected to open around 65 points higher.
Earnings figures for the final quarter of 2011 from Goldman Sachs are released before the market opens, and this will help set the tone for the US session.
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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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