Financial Market Comments from David Jones, Chief Market Strategist, IG Index.

In mid-morning trading UK shares are modestly higher.

Banking issues are dominating trader’s thoughts today with updates from Barclays and HSBC.

Numbers from Barclays see profits in the first nine months of the year down by almost 20% while HSBC paints a more upbeat picture, stating that its numbers were ahead of where the bank was a year ago.

Market reaction has been predictable so far with Barclays off by 3% and HSBC up by a similar amount.

After seeing such strong gains since the March lows, the likes of Barclays and RBS seem to have lost the interest of the market in recent months and today’s figures look likely to continue steering investors towards the perceived safe pair of hands that is HSBC, if they really want exposure to banks.

Looking at the major indices, there is maybe an element of twitchiness creeping back into the market. Although the Dow Jones Industrials pushed out to fresh highs for the year yesterday, the FTSE 100 and S&P 500 are still trading just below their October highs.

For the FTSE the big level at the moment is 5300 and it would not be surprising to see markets mark time ahead of here, or even for some to book profits following the strong rise seen so far this month.

Looking ahead to the US, at the moment we are expecting the Dow Jones to start off a little weaker, down around 15 points from last night’s close.

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.

Clean Financial - Spread Betting