Indices Recover After Sell Off: Index Spread Trading News
Financial Market Comments from David Jones, Chief Market Strategist, IG Index.
In mid-morning trading, shares have made a quiet but positive start to the day.
After the steep slides seen on Thursday that pushed the FTSE 100 back below 5300, it is not surprising to see some bargain hunters being tempted out.
The recovery so far today has been a gradual one – with little on the economic calendar traders may be reluctant to open up too many new positions on a Friday, preferring to wait for the start of a fresh week before re-entering the fray.
The UK index has been well underpinned by the 5200/5250 area in the past ten days, so there seems little reason to get overly negative while the market holds above here.
There is always the nagging worry that shares have got ahead of the economic recovery – but that was just as valid back in the summer for example and it did not stop the rally.
Sentiment towards shares still seems positive and yesterday’s shakeout hasn’t changed that.
Looking ahead to the US open we are expecting the Dow Jones index to start off a little weaker but only by about ten points.
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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.
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